Hoth Therapeutics to buy up to $1 million worth of Bitcoin

Hoth Therapeutics, a publicly-traded biopharmaceutical company, has adopted Bitcoin (BTC) as a treasury asset.

The clinical-stage biopharmaceutical company announced on Nov. 20 that its board of directors had approved adding BTC to its balance sheet. In the first step of this significant move, Hoth Therapeutics will buy up to $1 million in Bitcoin, according to details in a press release.

Big move as Hoth buys Bitcoin

Hoth points to Bitcoin’s traction as an investment asset, global adoption and rising institutional purchase as key to its decision. Bitcoin ETFs and options approval, increased ETF inflows and assets as well as plans for strategic BTC reserves has also buoyed several platforms.

The Hoth management team also looked at BTC as a hedge against inflation and store of value as crucial features.

“As Bitcoin continues to grow, gaining investor attention and acceptance as a major and primary asset class, we believe that Bitcoin will serve as a strong treasury reserve asset,” Robb Knie, chief executive officer of Hoth said.

“With recent approval of Bitcoin ETFs and increasing activity from institutional investors, it is a strong addition to our treasury strategy. We believe its inflation-resistant characteristics may make it a reliable asset as a functional store of value,” Knie added.

Hoth’s move comes as MicroStrategy, the company that has acquired a massive BTC haul since its first purchase in 2020, added to its holdings with a $4.6 billion purchase. Other companies, including ‘Asia’s MicroStrategy’ Metaplanet are looking to follow suit.

Endowments, pension funds and family offices are among those to also take a serious look at Bitcoin.

Meanwhile, the price of Bitcoin has surged to new all-time highs above $94,000 amid positive sentiment since Donald Trump’s re-election. Analysts say the benchmark crypto asset will surpass $100k, going parabolic in the next months.