Health Companies’ XRP Adoption and Crypto Investments Spark Concerns

The healthcare industry’s increasing foray into crypto investments has drawn scrutiny, with SEC lawyer Marc Fagel expressing skepticism over the rationale behind such decisions. Wellgistics Health’s adoption of XRP has ignited a discussion, underscoring concerns about transparency and accountability in the sector.

Wellgistics Health’s XRP Adoption Sparks Criticism

In a recent X post, former SEC lawyer Marc Fagel raised concerns over the growing trend of crypto investments by healthcare companies. His criticism comes on the heels of the Nasdaq-listed pharmaceutical company Wellgistics Health’s XRPL integration.

Notably, Fagel quested the rationale behind a healthcare startup with minimal revenue and assets accumulating a cryptocurrency stockpile. He attributed his skepticism to his 30 years of experience investigating securities fraud, which has made him inherently suspicious of cryptocurrency. His tweet read,

Why would a purported health care start-up with de minimis revenue and assets need a crypto stockpile? I realize that 30 years investigating securities fraud makes me inherently suspicious, which is why I avoid all things crypto, but c’mon…

Furthermore, Fagel highlighted that Wellgistics Health’s financial situation appears precarious, with minimal sales and net losses, which raises questions about the logic behind investing in XRP. Given the company’s struggles to generate significant revenue and operate profitably, Fagel doubts the wisdom of this move, especially considering the company’s limited assets, which may hinder its ability to invest in growth opportunities, pay off debts, or navigate financial challenges.

It is noteworthy that his tweet comes in direct response to a post shared by XRP lawyer Bill Morgan. Morgan shared his enthusiasm for Wellgistics Health’s XRP adoption and XRPL integration, deeming it a “real business utility” for the ledger.

While the SEC lawyer raised eyebrows, Morgan highlighted the possibility of the healthcare company adopting XRP to attract investment and raise funds. He added that it also aligns with a broader trend of companies incorporating cryptocurrencies like XRP into their treasury management.

For instance, vertical farming technology firm Nature’s Miracle has recently revealed its XRP treasury plan, with an investment of up to $20 billion. With this move, Nature’s Miracle has become one of the first US firms to embrace XRP as a treasury asset.

Healthcare Companies Make Notable Crypto Investments

Apart from Wellgistics Health, several other healthcare companies have announced notable cryptocurrency investments. Prenetics Global Limited, a prominent health sciences company, is one of the first health companies to establish a Bitcoin treasury. On June 18, the company announced a $20 million investment in Bitcoin, acquiring 187.42 BTC at an average price of $106,712 per coin, with the assets held in a Kraken custody account.

Another notable healthcare firm with crypto investment is the Nasdaq-listed Kindly MD. The platform has made an initial purchase of 21 BTC, valued at about $2.3 million as part of adopting a Bitcoin treasury. The firm has also announced further fundings to establish its crypto investments.