Can 23andMe Survive Its Financial Crisis?

Do you remember when 23andMe was the golden child of genetic testing? Millions swabbed their cheeks, eager to uncover ancestry secrets or health risks—until the hype faded, lawsuits piled up, and the company’s stock plummeted. Now, bankruptcy looms.

If you’re a shareholder, you might be staring at your portfolio like it’s a pile of unopened collection letters: Maybe if I ignore it, the problem will vanish. But just like drowning in personal debt, corporate debt doesn’t disappear with wishful thinking.

How Bankruptcy Could Modify 23andMe’s Future

The moment 23andMe files for bankruptcy, the automatic stay kicks in. Here’s what changes:

• Lawsuits freeze. No more creditors or plaintiffs banging down the door.
• Operations continue. The company can restructure debts, renegotiate contracts, and (maybe) keep its labs running.
• Some debts dissolve. Shareholders might lose out, but survival could mean shedding unpayable obligations.

Bankruptcy isn’t failure—it’s a reset button. Think of General Motors, Delta Airlines, or Marvel Comics. All filed. All lived to tell the tale.

Pride

“We’re a tech disruptor! We don’t do bankruptcy.” Sound familiar? It’s the same stubbornness that keeps individuals drowning in debt. But here’s the truth:

• Bankruptcy isn’t shameful. It’s a tool. Even Thomas Jefferson (post-presidency) and Kodak used it.
• The real failure? Waiting too long. By the time rationality wins, the company’s carcass might be picked clean.

Should 23andMe liquidate its DNA database to pay creditors?