Basel Medical Group (BMGL) Announces Plans to Acquire $1B Worth of Bitcoin (BTC)

Singapore-based Basel Medical Group (BMGL) announced plans to acquire $1 billion worth of Bitcoin (BTC) to strengthen its balance sheet and accelerate expansion across Asian markets.

Basel Medical Group Ltd (BMGL) announced plans to acquire $1 billion worth of Bitcoin (BTC) as part of a broader capital restructuring to strengthen its balance sheet and accelerate expansion across Asian markets.

The firm, listed on the New York Stock Exchange (NYSE) since 2021, is recognized for its medical technology and services in Southeast Asia. It has been actively exploring avenues to expand its footprint in the region.

The proposed transaction, with a consortium of institutional investors and high-net-worth individuals active in the crypto sector, will occur through a share-swap arrangement. This contrasts with a direct cash purchase of Bitcoin from reserves, a move that usually leads to heightened interest in the cryptocurrency.

The company described the initiative as a “landmark transaction” that would represent one of the largest Bitcoin allocations by a healthcare group in the Asia-Pacific region.

The announcement stated an intention to finalize the deal within the current quarter, subject to regulatory approval and standard closing conditions.

Transaction structure and strategic objectives

The proposed acquisition will occur through a share-swap arrangement with external investors, rather than a direct cash purchase of Bitcoin from reserves. Basel described this model as offering enhanced capital efficiency while preserving liquidity for healthcare operations.

The company’s management also highlighted the diversification into Bitcoin as a hedge against currency volatility and inflation risks in emerging markets, particularly in regions where it seeks to expand.

This initiative follows a period of macroeconomic instability that has seen rapid inflation in major economies, largely driven by the lingering effects of the pandemic and the Russia-Ukraine conflict.

Furthermore, BMGL anticipates the acquisition to serve as a catalyst for strategic partnerships in both the healthcare and digital asset sectors. These partnerships are expected to yield new investment opportunities and technological advancements for the firm.

The company’s leadership announced that it would provide additional details upon the transaction’s completion and expressed commitment to regulatory compliance in all jurisdictions where it operates.

Despite the company’s framing of the move as a financial strengthening initiative, its stock price declined sharply following the announcement.

Its shares fell to a low of $2.10 despite climbing 68% earlier in the day to a high of $3.41 from the daily opening price of $2.84. The volatility adds to the massive 57% drawdown observed on May 14.

Despite the tumultuous price action for the day, the share price mounted a recovery before the trading day ended to close the day down 9.89% to $2.37 as of press time.

The reaction contrasts with recent market behavior in other firms announcing Bitcoin strategies.

On March 12, Rumble (NASDAQ:RMBL) saw its stock price rise 5% after announcing a Bitcoin acquisition. Japanese firm Metaplanet (TYO:3990) gained nearly 20% in a single session on July 22 after disclosing a purchase of more than 20 BTC.

HK Asia Holdings (HKG:01080) surged 92.98% on Feb. 13 after acquiring 1 BTC for approximately $96,150. Meanwhile, Brazilian fintech Méliuz (Bolsa:MLUZ3) gained 16.3% on March 6 after detailing its Bitcoin investment framework.

While Basel’s initial market response diverged from those precedents, the company maintains that the transaction is part of a broader financial restructuring initiative rather than a speculative bet.