- Know Labs adopts Bitcoin treasury strategy after acquisition by Greg Kidd.
- 1,000 Bitcoin payment makes crypto 82% of Know Labs’ market value.
- Know Labs joins over 225 companies holding Bitcoin in their corporate treasury.
Know Labs Inc., a publicly traded medical technology firm, is set to integrate a Bitcoin treasury strategy following its acquisition by an affiliate of fintech entrepreneur and former Ripple executive Greg Kidd. With the statement made on June 6, it is clear that the Seattle-based company is moving in a new strategic direction, having traditionally focused on non-invasive health monitoring solutions.
Bitcoin to Make Up 82% of Know Labs’ Market Cap
Goldeneye 1995 LLC, a business linked to Mr. Kidd, is managing the acquisition. Under the agreement, Goldeneye will acquire a major stake in Know Labs by paying with 1,000 Bitcoins. Moreover, it will provide additional cash to support the company’s financial needs. The funds will clear debt and repurchase preferred shares. Additionally, they’ll boost working capital for future growth
. When the process is finished, Mr. Kidd is expected to serve as Chief Executive Officer and Chairman of the Board.
When the deal is sealed, Know Labs will deposit the 1,000 Bitcoin into its corporate treasury. This step makes the company follow a trend among public firms who are choosing to keep Bitcoin on their balance sheet. The firm strives to provide its investors a valuable way to gain from cryptocurrencies which it sees as a “highly attractive” digital asset.
It is expected that Bitcoin holdings will represent the biggest part of the company’s balance sheet. It is said that management intends to track performance using the “multiple of net asset value” (mNAV) system. Imagine that the bitcoin price ends the day at $105,000 and the company has just under $128 million in market cap. At that point, over 82% of the company’s market cap would be in the digital currency.
According to a press statement made by Mr. Kidd, he is hopeful about Know Labs’ new future. He noted that, since the market and regulations look positive, it is important to focus on a Bitcoin-treasury strategy. It is also thought that joining the stock market will help Goldeneye raise revenue from its existing Bitcoin yield model.
Know Labs Joins 225 Firms Holding Bitcoin Reserves
Despite this significant shift in financial strategy, the company’s foundational research in medical diagnostics will continue. Ron Erickson, the founder, is set to lead a team that will concentrate on new research in health technology that does not need invasive procedures. Mr. Erickson will also be named Vice Chairman of the Board after the transaction takes place.
He was excited about the partnership, which he saw as a significant step in the company’s history. Further, he emphasized that Know Labs was committed to research, as he showed confidence in the value of working on Bitcoin.
More organizations have adopted Bitcoin as a way to save their cash in recent times. In addition to Metaplanet and Strategy (earlier known as MicroStrategy), Know Labs takes part in a growing group of businesses using Bitcoin in their financial processes. New data suggests that more than 225 businesses and organizations currently hold Bitcoin.
By aligning with this trend, Know Labs positions itself at the intersection of digital finance and health innovation. As a result, the company and its stakeholders can expect promising advancements in both sectors.