Hoth Therapeutics and Acurx Pharmaceuticals Allocate $1M Each to Bitcoin, Reflecting Growing Interest in Cryptocurrency as a Financial Asset

Hoth Therapeutics, a clinical-stage biopharmaceutical company, will allocate $1 million into Bitcoin, citing its potential as a hedge against inflation and a store of value.

Two publicly traded pharmaceutical companies, Hoth Therapeutics and Acurx Pharmaceuticals, have each announced plans to allocate up to $1 million to Bitcoin as part of their treasury strategies.

Hoth Therapeutics, a clinical-stage biopharmaceutical company, will be adding Bitcoin to its treasury, specifically allocating $1 million. The move is part of a broader trend of Bitcoin adoption by businesses, with the company citing the cryptocurrency’s potential as a hedge against inflation and a store of value.

The company’s board of directors approved the move, which is influenced by several factors including the approval of exchange-traded funds (ETFs) and increased market activity.

“The approval of bitcoin ETFs and the trust of major financial institutions in this asset class, combined with the observed strength of bitcoin as an inflation hedge and store of value over the last several months, have influenced our decision,” said Robb Knie, CEO of Hoth, in a statement.

Hoth’s treasury strategy is focused on preserving capital and generating a return on cash not needed for operations over the next 12 to 18 months. The company’s drug development plans will not be affected by this decision.

“We believe that bitcoin will serve as a strong treasury reserve asset,” said David P. Luci, CEO of Acurx, in a statement.

The company’s financial strategy is centered on deploying cash efficiently and includes a preference for inflation-resistant investments.

“We believe bitcoin to be an optimal treasury reserve asset. It is a scarce digital asset with a limited supply of 21 million bitcoin ever to be created, rendering it inherently inflation resistant,” Luci added.