Basel Medical Group (Nasdaq: BMGL) has entered exclusive negotiations for a $1 billion acquisition of Bitcoin (BTC)

The move will reshape the company’s treasury reserves while continuing its focus on healthcare expansion across Asia.

Basel Medical Group Ltd (Nasdaq: BMGL) is in the midst of a substantial financial transformation. As disclosed in a recent filing with the U.S. Securities and Exchange Commission (SEC), the company has entered into exclusive negotiations for a $1 billion acquisition of Bitcoin (BTC) from a private seller.

This deal, still subject to standard closing conditions and regulatory approvals, is being structured as a share-swap transaction with institutional investors and high-net-worth individuals from the cryptocurrency sector, who will be converting their BMGL shares into preferred shares.

Upon completion, which is anticipated within the current financial quarter, the company will be incrementally funded with $1 billion in capital, positioning BMGL among the most financially flexible medical service providers in the Asia-Pacific region.

The company's shares rose by 5.4% in premarket trading on Wednesday.

Basel Medical is currently seeking to expand its presence in emerging Asian healthcare markets, and this transaction is expected to diversify the company's balance sheet and provide it with greater access to capital for future acquisitions.

"This $1 billion financial transformation will give us the capacity to execute our Asia growth strategy while maintaining conservative financial management," said Dr. Darren Chhoa, Chief Executive Officer of BMGL.

"We are also cognizant of the importance of aligning our actions with our values. This move supports our mission to become a top-tier healthcare platform in the region, offering high-quality medical services with integrity and efficiency," he added.

The company is working closely with a group of crypto-focused investors to finalize the terms of the transaction, which will be structured to ensure optimal tax treatment for all parties involved.

The transaction is expected to close in the third quarter of 2023, subject to regulatory approvals, including those from the relevant authorities in Singapore and the United States, as well as other standard closing conditions.