Cryptocurrency fund Off The Chain Capital has invested more than $1 million in medical data company OneMedNet to purchase Bitcoin.
By purchasing bitcoin at a discount through such allocations, the fund hopes to outperform the price of bitcoin with its investments.
OneMedNet (ONMD) raised $4.6 million in a private placement late last month and used $1.8 million of the proceeds to purchase Bitcoin {{BTC}}.
Investors included Off The Chain Capital, a crypto investment fund with ties to Bloq Chairman Matthew Roszak and Fortress founder Rob Kauffman, which purchased a combination of shares and warrants in ONMD.
OneMedNet has seen its stock price drop more than 90% since going public in a SPAC deal late last year.
“It’s an opportunity that if executed correctly could outperform bitcoin,” Brian Dixon, CEO of Off The Chain Capital, told CoinDesk. “Our goal as an investor is to look for those discount or value opportunities and work really hard to outperform bitcoin.”
Dixon believes it is vital for public companies to invest some of their cash in Bitcoin rather than real estate, stocks or bonds to maximize value for shareholders.
“I think more and more public companies are going to wake up to the fact that if you don’t have Bitcoin on your balance sheet, you’re not being smart as a custodian of the additional cash flow that you have in terms of where you allocate that part of your treasury reserve strategy,” he said.
Off the Chain and OneMedNet make a similar claim to Michael Saylor, who says that MicroStrategy’s (MSTR) stock price has outperformed bitcoin’s return since it began adding cryptocurrency to its balance sheet in August 2020.
Other public companies pursuing similar strategies include U.S.-listed Semler Scientific and Japan’s Metaplanet.
Read more: Metaplanet Arranges Loan to Buy $6.8 Million BTC