SBC Medical Group Holdings Incorporated (NASDAQ: SBC) has announced its decision to purchase Bitcoin (BTC), the world's most widely circulated cryptocurrency, totaling the equivalent of 1 billion yen. The purchase is part of the company's strategic initiatives aiming to build a robust financial base supporting long-term enterprise value creation through flexible and efficient cash management in response to macroeconomic conditions.
The company states that cryptocurrencies are gaining attention as a new store of value and are recognized as a means of improving financial stability through diversification, particularly during periods of inflation. Bitcoin, as the largest cryptocurrency by market capitalization and with a limited supply, is expected to experience long-term value appreciation and is increasingly recognized as an attractive means of hedging against inflation for corporations.
This purchase is positioned as a critical step toward establishing a robust financial foundation that can flexibly adapt to various economic environments and support sustainable growth. SBC Medical Group Holdings aims to manage this asset prudently and responsibly by adhering to the principles of asset diversification and implementing rigorous risk management measures.
The purchase was executed through Coinbase, Inc., a major cryptocurrency exchange in the United States, by SBC Medical Group Holdings, the group's holding company in the U.S. The company emphasizes that the decision was made with careful consideration of accounting, tax, and cybersecurity aspects.
In terms of specific details of the cryptocurrency purchase: 1. Cryptocurrency to be purchased: Bitcoin 2. Purchase amount: Equivalent to 1 billion yen 3. Purchase period: February to May 2025 (planned)
SBC Medical, headquartered in Irvine, California, and Tokyo, Japan, primarily focuses on providing comprehensive management services to franchisee clinics, including advertising and marketing needs, staff management, booking reservations for franchisee clinic customers, assistance with franchisee employee housing rentals and facility rentals, construction and design of franchisee clinics, medical equipment and medical consumables procurement, provision of cosmetic products to franchisee clinics for resale to clinic customers, licensure of the use of medical technologies, trademark and brand use, IT software solutions, management of the franchisee clinic's customer rewards program, and payment tools for the franchisee clinics.
The company has expressed its commitment to enhancing transparency in its operations and strengthening trust with shareholders and stakeholders alike, while prioritizing strategic investments that drive business growth and leveraging flexible financial strategies, including cryptocurrencies, to maximize its revenue. The market has reacted to these announcements by moving the company's shares -1.5% to a price of $4.71. For more information, read the company's full 8-K submission here.
