The Chinese medical diagnostics provider, Huajian Medical, has announced its “Global Enhanced Ethereum Treasury with Downward Protection Mechanism” strategy, positioning Ethereum (ETH) as its core reserve asset.
This strategy makes ETH its main reserve asset. The company aims to hold more ETH than any other company on the Hong Kong stock market and to become a global leader in Ethereum reserves.
According to cnLedger, Huajian already bought 5,190 ETH, worth over $22 million, and plans to spend another $112 million on ETH. This initial purchase, made at $3,661 per ETH, yielded a $1.8 million profit in a single day as ETH hit $4,008.96. Huajian Medical is turning its medical assets, like equipment or property, into digital tokens on its ivd.xyz exchange and converting the profits into Ethereum (ETH) to grow its treasury.
This initiative to launch the Global Enhanced Ethereum Treasury with a downward protection mechanism indicates that the firm is embracing blockchain technology in healthcare. Huajian Medical is using a “fixed investment” plan to buy ETH steadily. The firm is using money from its funds, yearly profits, selling off unneeded assets, and a financing method called At The Market (ATM) transactions to implement this plan.
The firm has collaborated with HashKey Group to make ETH transactions safe and efficient. This collaboration supports Huajian Medical’s goal of using blockchain technology in healthcare.
To protect against ETH price drops, they use a “downside protection mechanism” with seven strategies, including special financing and financial tools like derivatives. This plan is similar to how MicroStrategy successfully invested in Bitcoin, which greatly increased its value.
With $880 million set aside for more ETH purchases, Huajian aims to transform healthcare financing using blockchain and hopes to reach a $100 billion market value in the next two years.