Hong Kong-listed Company Boyaa Interactive: $230 Million Market Cap, Bitcoin Holdings Exceed $226 Million!

Hong Kong-listed Company Boyaa Interactive: $230 Million Market Cap, Bitcoin Holdings Exceed $226 Million!Boyaa Interactive (00434), a Hong Kong-listed company with a total market capitalization of approximately $230 million, boasts a staggering $226 million in Bitcoin holdings. On November 12th, Boyaa Interactive released an announcement stating that as of the announcement date, the company held 2641 Bitcoin, with a total cost of approximately $143 million, averaging about $54,000 per coin

Hong Kong-listed Company Boyaa Interactive: $230 Million Market Cap, Bitcoin Holdings Exceed $226 Million!

Boyaa Interactive (00434), a Hong Kong-listed company with a total market capitalization of approximately $230 million, boasts a staggering $226 million in Bitcoin holdings. On November 12th, Boyaa Interactive released an announcement stating that as of the announcement date, the company held 2641 Bitcoin, with a total cost of approximately $143 million, averaging about $54,000 per coin. Additionally, it held 15,400 Ethereum, at a total cost of $42,578,100, averaging approximately $2,756 per coin. The recent surge in the digital currency market, with Bitcoin reaching a peak above $90,000 and Ethereum hitting an all-time high of $3,440, has resulted in Boyaa Interactive's Bitcoin and Ethereum holdings generating over $100 million in unrealized gains.

Boyaa Interactive is an internet company primarily engaged in online card and board games. Established in 2004, the company went public on the Hong Kong Stock Exchange on November 12, 2013. This gaming company has consistently demonstrated a strong interest and proactive stance towards digital assets, viewing them as a crucial part of its Web3 business development and asset allocation strategy.

As early as 2023, Boyaa Interactive began acquiring digital assets, including cryptocurrencies, and by year-end, held 78.6 million yuan in digital assets. By the end of the first half of this year, the company's total digital assets had climbed to 1.688 billion yuan. The company's semi-annual report reveals that digital assets constitute a significant portion of its total assets, reaching 75%, and exceeding 90% of its current assets.

Boyaa Interactive's digital asset portfolio primarily consists of Bitcoin, Ethereum, and Tether. As of the end of June this year, the company held approximately 2079 Bitcoin, with an average cost of approximately $51,300 per coin, adding 885 Bitcoin in the second quarter alone. In addition, the company holds about 15,300 Ethereum, with an average cost of approximately $2,756 per coin. Notably, Boyaa Interactive's substantial increase in net profit during the first half of the year was directly attributed to the substantial rise in the fair value of its digital assets. During this reporting period, the company realized a fair value gain of approximately 245.7 million yuan on digital assets, accounting for 87% of its net profit attributable to parent company shareholders.

Since July this year, Boyaa Interactive has continued to increase its Bitcoin holdings. As of August 22, the company held approximately 2410 Bitcoin, with an average cost of approximately $51,900 per coin, while maintaining its Ethereum holdings at the same level.

It is evident that Boyaa Interactive's Bitcoin acquisition pace has slowed significantly over the past two months, likely a direct consequence of the rising price of Bitcoin. In recent times, driven by investor speculation that Donald Trump's return to the White House could be favorable for Bitcoin, the cryptocurrency has surged significantly, crossing the $80,000 threshold for the first time on November 10th, and subsequently maintaining its elevated position. As of November 12th, 23:00, one Bitcoin was valued at $86,900.

It is worth mentioning that in March of this year, Boyaa Interactive announced its adoption of a new dividend policy: for the next five years, it will continuously distribute annual operating profits to shareholders at no less than 20%, and will allocate a minimum of 5% of the annual appreciation gains from cryptocurrency purchases to dividend payments.

Upon its listing, Boyaa Interactive attracted significant market attention, with its shares attracting subscriptions from nearly 77,000 individuals and freezing 86.8 billion Hong Kong dollars, becoming the "Freezing King" of the Hong Kong stock market. However, the company's share price performance since its listing has been underwhelming, with low daily trading volume. Since March this year, due to improved company performance and substantial investments in cryptocurrencies, its stock turnover has significantly increased.

Besides Boyaa Interactive, other Hong Kong-listed companies have also embraced cryptocurrency investments. In March, Ying Universe (03700) issued an announcement confirming that its board had approved a $100 million budget for the company to purchase cryptocurrencies on any regulated and licensed trading platforms over the next five years. Guofu Innovation (00290) also announced in August that it had purchased a total of 36 million Hong Kong dollars' worth of Bitcoin (excluding transaction costs) between March and August. Blue Focus Interactive (08267) disclosed in its 2024 mid-year earnings report that it held 142.8539 units of Bitcoin and 848.386 units of Ethereum, at a total cash cost of approximately $8.8 million.

"Blockchain First Stock" Canaan Inc. (NASDAQ-listed) has also heavily invested in Bitcoin. As of June 30th, the company held 1133.5 Bitcoin, with a total fair value of $69.9 million at the time.

News of A-share companies holding Bitcoin is relatively scarce. In August, Zhidu Holdings (000676) stated on an interactive platform that it accounts for Bitcoin as an intangible asset and measures it initially at cost; as of December 31, 2023, the book value of its intangible assets digital assets (Bitcoin) was 56.4687 million yuan. In the first quarter of this year, the company sold some of its Bitcoin holdings. However, in early November, Zhidu Holdings announced that it still holds Bitcoin.

It is essential to note that in December 2013, the People's Bank of China, along with five other government departments, issued a "Notice on Preventing Bitcoin Risks", stating that Bitcoin is not a currency and cannot and should not be used as a currency in market circulation. Moreover, the document explicitly prohibits all financial institutions and payment institutions from engaging in Bitcoin-related businesses.

According to Zhidu Holdings' regular reports, the Bitcoin it holds was generated by its subsidiary Zhidu Hong Kong purchasing cloud computing services from relevant companies outside mainland China.

Boyaa Interactive's substantial Bitcoin investment, alongside other Hong Kong-listed companies' proactive cryptocurrency deployments, underscores the emerging focus on digital asset investment within the market. However, the cryptocurrency market is characterized by high volatility and considerable risk. Investors must adopt a cautious approach, conduct thorough due diligence, and implement robust risk management strategies.

Proofreading: Wang Jincheng