Hoth Therapeutics approves purchase of $1m Bitcoin

Nasdaq-listed Hoth Therapeutics announced plans to purchase Bitcoin as a treasury reserve asset.

Hoth announced on November 20 that its board of directors approved the purchase of $1 million worth of Bitcoin (BTC). The biopharmaceutical company will be the latest institution to adopt Bitcoin as a reserve asset.

While Hoth’s Bitcoin acquisition is relatively small compared to other recent purchases, it marks another significant upside for Bitcoin. The leading cryptocurrency continues to attract attention on Wall Street and globally, known for its value as a store of wealth and an inflation hedge.

Bitcoin recently reached an all-time high above $94,000, driven by Donald Trump’s victory in the 2024 US elections on November 5. In recent weeks, BTC has surpassed the market cap of silver and Saudi Aramco. It is now larger than the combined market cap of Visa and Mastercard.

Robb Knie, CEO of Hoth, outlined several reasons why the clinical-stage biopharmaceutical company decided to add Bitcoin to its balance sheet.

These include the asset’s growing acceptance among institutional investors and its potential to become a “strong treasury reserve asset.”

Hoth’s CEO added:

“With the recent approval of Bitcoin ETFs and increased activity from institutional investors, this is a strong addition to our treasury strategy. “We believe its inflation-proof properties can make it a reliable asset as a functional store of value.”

BTC has been gaining a lot of attention since Trump’s re-election, and anticipated changes at the US Securities and Exchange Commission are one of the developments helping the market’s bullish stance.

Meanwhile, plans for a strategic Bitcoin reserve for the United States are also underway, led by US Senator Cynthia Lummis. The senator suggested that the US government sell its gold to buy Bitcoin.

Elsewhere, MicroStrategy’s BTC strategy is also strengthening, with the company adding $4.6 billion worth of assets to its coffers.