SRx Health Solutions, Inc. (NYSE American: SRXH) announced that it has reduced its short exposure to Bitcoin and Ethereum to almost zero, bringing the total crypto portfolio to a net long position. The move was executed using the company’s internally developed quantitative models, which aim to preserve long‑term optionality while limiting downside risk in volatile market regimes.
The $18 million crypto allocation was built up after the December 2025 acquisition of EMJ Crypto Technologies, a firm that specializes in a “Gen2” digital‑asset treasury framework that blends AI, systematic risk controls and multi‑asset exposure. The reduction in short positions reflects a strategic decision to shift from a heavily leveraged short stance toward a more neutral or long bias, a change that management says will reduce volatility while still allowing the company to benefit from upside potential in the digital‑asset space.
SRx’s core pet‑health and wellness business has been under pressure, reporting a net loss of more than $45 million in the past twelve months and a stock price decline of over 90 % in the last year. The company’s market capitalization now ranges between $4 million and $9.74 million, making the $18 million crypto holding a substantial portion of its total assets. The company has also received notices from NYSE American regarding compliance with listing standards, underscoring the importance of prudent risk management in its treasury operations.
Board member Michael Young explained that the initial $10 million crypto deployment was “not about making a market call or chasing short‑term price action.” He added that the recent short‑position cut is intended to “preserve long‑term optionality across volatile market regimes” and to “offer attractive risk‑adjusted return potential for shareholders.” The decision aligns with the company’s broader capital‑allocation strategy, which now includes exposure to publicly traded securities and commodities such as gold and silver.
On the announcement day, SRXH’s shares rose 1.84 %, a modest uptick that analysts attribute to the perception that the company is taking a less risky stance in its digital‑asset strategy. Investors appear to view the move as a sign that SRx is tightening its risk controls while still pursuing growth opportunities in the crypto treasury space.
The reduction in short exposure signals a cautious approach amid ongoing financial headwinds. While the company’s core business remains distressed, the shift toward a more neutral crypto position may help mitigate volatility and improve the overall risk profile of its treasury. However, the substantial allocation relative to the company’s size and its compliance challenges suggest that investors will continue to monitor SRx’s ability to balance its legacy operations with its new digital‑asset strategy.
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