BioNexus Gene Lab

Traditional chemical business: Supplying industrial chemicals to the Southeast Asian market through wholly-owned subsidiary Chemrex, this business accounted for 99.86% of total revenue in Q1 2025. Biotechnology Development: Focused on the research and development of liquid biopsy technology for early detection of cancer and chronic diseases, but currently, the revenue contribution is extremely low (only 0.14% in Q1 2025). Cryptocurrency-related business: BGLC is the first company on NASDAQ to use Ethereum (ETH) as its primary financial reserve. Its strategic white paper states that the reasons for choosing ETH include increased institutional adoption, staking yield potential, and expectations of protocol upgrades. The company does not directly engage in blockchain technology development or operate cryptocurrency trading platforms, but instead optimizes its asset structure by holding ETH.

Traditional sources of profit: The price spread profit from industrial chemical trading, with revenue of 2.134 million dollars in Q1 2025. The technical licensing fee for genomic screening services, but the scale is very small (only $3,068 during the same period). Profit related to cryptocurrency: Asset appreciation: Capital gains from holding ETH due to price increases. For example, if the price of ETH rises from $1,800 in Q3 2024 to $2,200 in Q2 2025, the value of the position will increase by 22.2%. Staking income: Participate in the ETH staking network to earn an annualized return of approximately 4% - 5%. This portion of income may be included in "other comprehensive income."

Stability of traditional business: The chemical business provides a continuous cash flow, with a cumulative revenue of $6.9868 million in the first three fiscal quarters of 2024, supporting the company's daily operations. The Value of Cryptocurrency Strategy: Asset Diversification: ETH reserves can hedge against fiat currency inflation risks. In Q3 2024, the company's market value was only 6.38 million USD, while ETH price fluctuations could significantly impact its balance sheet. Technological foresight: By holding mainstream cryptocurrencies, the company signals its embrace of Web3 technology to the market, attracting investors interested in innovative fields. Financial flexibility: The high liquidity of ETH allows it to be converted into cash at any time to address potential debt pressures (net loss of $1.25 million in Q3 2024).

Mainly affected cryptocurrency: Ethereum ( ETH ). Impact Mechanism: Market demand: A large-scale increase in BGLC's holdings may drive up the price of ETH. For example, if it plans to invest $17 million (IPO fundraising amount) to purchase ETH, it could increase its holdings by approximately 7,700 coins at the current price, accounting for 1.2% of the daily trading volume. Market sentiment: As the first company on Nasdaq to use ETH as a reserve, its strategic choices may influence the asset allocation decisions of other listed companies, creating a demonstration effect. Industry linkage: ETH price fluctuations directly affect the company's market value. For example, during the period when the ETH price dropped 20% in November 2024, the BGLC stock price simultaneously fell 39.83%.