Biopharma exec says Bitcoin could help industry through ‘biotech winter’

NASDAQ-listed biopharmaceutical agency Atai Life Sciences says cryptocurrencies like Bitcoin could possibly be key to survival for biotech startups as they wade by way of years of regulatory approvals. 

Atai, which is growing psychological well being therapies utilizing psychedelics like DMT and MDMA, has turn into the most recent public firm to announce plans to purchase Bitcoin.

It plans to purchase $5 million of Bitcoin (BTC), its founder and chair Christian Angermayer wrote in a March 20 Substack submit.

“Drug growth is a cash-hungry, long-term enterprise,” he stated. “The required steps to realize regulatory approval can simply take greater than a decade.”

TechCrunch reported in January that, based on a number of knowledge units, the variety of startups shutting down rose in 2024 in comparison with 2023 as corporations did not obtain extra funding to maintain working.

Angermayer stated the approval course of is crucial for drug growth, however it exposes corporations to monetary dangers whereas sticky inflation and excessive rates of interest have precipitated the present “biotech winter.”

He added that the present business method is to place money reserves in near-zero-yield accounts, as “preserving capital was extra vital than incomes a return on their money stability.”

“This context units the stage for contemplating unconventional treasury strikes — like including Bitcoin to the treasury — to handle the dual threats of inflation and low-yielding reserves, and normally to optimize and maximize shareholder worth.”

Atai will be part of no less than 5 different public medical corporations which have purchased Bitcoin in latest months with the goal of boosting shareholder returns.

Biotech agency Quantum BioPharma stated on March 20 that it had now spent $3.5 million in whole to purchase BTC and different cryptocurrencies after an preliminary $1 million funding in December. 

Medical machine maker Semler Scientific stated final month that because it began in Might, it had spent a complete of $280.4 million shopping for 3,192 BTC.

Hoth Therapeutics, Acurx Prescribed drugs and Enlivex Therapeutics stated in separate statements on Nov. 20 that every of them would purchase $1 million in Bitcoin.

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Atai’s Angermayer stated his agency’s Bitcoin purchase would primarily be as a long-term inflation hedge but in addition a short-term diversification play. He added that Bitcoin is more likely to have short-term value fluctuations, so the Berlin-based agency is holding principally US {dollars}, short-term securities, and shares for its desired run price into 2027.

Atai’s $5 million put would imply it is ready to purchase simply over 59 BTC at its present value of round $84,300 and make it the world’s 52nd largest holder amongst public corporations, based on Bitbo knowledge.

Bitcoin has struggled to maintain afloat amid a wider market rout on account of US President Donald Trump’s tariff threats and fears of a US recession, which Trump hasn’t dominated out.

Atai’s share value rose early in March 20 buying and selling to a peak of $1.47 however tapered off to shut the day down 1.44% at $1.37, based on Google Finance. Its inventory has sunk practically 93% from its mid-2021 public debut peak however is up 3% up to now this 12 months.

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