Medical technology company BioNexus Gene Lab Corp. (NASDAQ:BGLC) announced the adoption of Ethereum (CRYPTO: ETH) as a treasury reserve asset on Wednesday, following the cryptocurrency’s inclusion in the U.S. strategic reserve.
What Happened: The company’s board approved the new Ethereum-focused treasury strategy, according to a press release.
“This decision marks BGLC as the first Nasdaq-listed company to exclusively prioritize Ethereum as a strategic treasury asset, and is in line with recent announcements of Ethereum being included in the U.S. “Crypto Strategic Reserve,” BioNexus said.
See Also: El Salvador’s Nayib Bukele Defiant Amid IMF’s Bitcoin Accumulation Concerns: ‘It Won’t Stop Now, And It Won’t Stop In The Future’
Alongside this, the company also unveiled its Ethereum Strategy Whitepaper, outlining the rationale behind opting for Ethereum.
The whitepaper highlights Ethereum’s strengths in decentralized finance, stablecoin settlements, and the ability to generate passive income through staking.
The whitepaper provides a deep dive into Ethereum’s institutional adoption, staking capabilities, and forthcoming protocol upgrades, all of which strengthen its long-term value and corporate utility.
The company also credited the blockchain-friendly laws of Wyoming, where it is incorporated, for influencing the decision.
Why It Matters: BioNexus’ move comes amid strengthening discourse around stacking cryptocurrency in corporate reserves to benefit from long-term gains.
Bitcoin (CRYPTO: BTC) treasury company Strategy Inc. (NASDAQ:MSFT) has been the market leader, accumulating a stockpile worth over $43.84 billion, according to bitcointreasuries.net.
Both Bitcoin and Ethereum would be at the “heart” of a U.S. strategic cryptocurrency reserve, President Donald Trump declared last week.
Price Action: At the time of writing, Ethereum was exchanging hands at $2,303.40, up 5.53% in the last 24 hours, according to data from Benzinga Pro.
Shares of BioNexus were up 5.39% in after-hours trading, after closing 3.37% higher at $0.3416 during Wednesday’s trading session.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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