Critical Biotech giant files Chapter 11 for 3 COVID labs, eyes Bitcoin treasury as lifeline

Core Points - ProPhase Labs Inc. has filed for Chapter 11 bankruptcy for its three COVID-19 testing lab units, which are owed tens of millions of dollars by insurance companies [1][2] - The bankruptcy filing aims to expedite the recovery of funds that ProPhase Labs believes are lawfully owed for its testing services [2] - The company anticipates cash collections of $50 million or more, net of legal and contingency fees, through litigation with insurance companies [3] Bankruptcy Details - The bankruptcy action is strictly limited to the COVID-19 testing lab units and does not affect ProPhase Labs or its other subsidiaries [6] - The bankruptcy process is unrelated to the company's exploration of a crypto treasury strategy [6] Crypto Treasury Strategy - ProPhase Labs' stakeholders approved proposals to pursue a crypto treasury strategy aimed at enhancing stockholder value and diversifying the corporate balance sheet [4][5] - The CEO stated that the crypto treasury strategy is designed to be accretive to current shareholders, leveraging the significant underlying value of the company's assets [5]