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Investing.com -- Profusa Inc. (NASDAQ:PFSA) stock tumbled 13% following the company’s announcement of an initial $1 million Bitcoin investment as part of its treasury management strategy.
The commercial stage digital health company, which specializes in continuous biochemical monitoring technology, revealed it has partnered with BlockFills to execute this cryptocurrency investment. Profusa indicated this move is intended to hedge against macroeconomic uncertainties by tapping into the growing adoption of digital assets.
"It is important that we diligently execute on our digital treasury strategy designed to maximize our Bitcoin investment and maintain sufficient capital to provide the best-in-class, AI-driven digital health platform for the benefit of chronic disease and health and wellness management," said Ben Hwang, Ph.D., Profusa’s Chairman and CEO.
Hwang described the Bitcoin purchase as "an important first step" in the company’s collaboration with Ascent Partners Fund to establish what he called a "low cost, capital efficient, best of breed, Bitcoin treasury strategy." He cited the company’s "strong conviction in Bitcoin as the digital store of value for the future."
The significant stock drop suggests investors may have concerns about the digital health company’s decision to allocate resources to cryptocurrency rather than focusing exclusively on its core business of biochemical monitoring technology. Profusa’s announcement comes amid ongoing volatility in cryptocurrency markets, which may be contributing to investor caution.
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