Hong Kong Listed Companies Go All-In on Bitcoin: Boyaa Interactive's Holdings Exceed $200 Million, With Over $100 Million in Profits

Hong Kong Listed Companies Go All-In on Bitcoin: Boyaa Interactive's Holdings Exceed $200 Million, With Over $100 Million in ProfitsA Hong Kong-listed company with a market cap of approximately $230 million has a Bitcoin portfolio worth a whopping $226 million. Boyaa Interactive (HK00434) announced on the evening of November 12 that, as of the announcement date, the company held 2,641 Bitcoins at a total cost of approximately $143 million, an average cost of about $54,000 per coin

Hong Kong Listed Companies Go All-In on Bitcoin: Boyaa Interactive's Holdings Exceed $200 Million, With Over $100 Million in Profits

A Hong Kong-listed company with a market cap of approximately $230 million has a Bitcoin portfolio worth a whopping $226 million. Boyaa Interactive (HK00434) announced on the evening of November 12 that, as of the announcement date, the company held 2,641 Bitcoins at a total cost of approximately $143 million, an average cost of about $54,000 per coin. They also hold 15,400 Ethereum at a total cost of approximately $42.5781 million, an average cost of about $2,756 per coin.

Boyaa Interactive is a gaming company founded in 2004, primarily focusing on online card games. The company went public on the Hong Kong Stock Exchange on November 12, 2013. Boyaa Interactive has been very aggressive in its investments in digital assets. According to Securities Times eCompany, Boyaa Interactive has stated: "The purchase and holding of cryptocurrencies is a crucial step for our group in developing and deploying Web3 business, and it is also a critical part of our asset allocation strategy."

As of the close of trading on November 12, Boyaa Interactive closed at HK$2.52, with a market cap of HK$1.79 billion. The recent surge in the digital currency market saw Bitcoin climb to almost $90,000 on November 12, while Ethereum reached over $3,440. Based on these prices, Boyaa Interactive's holdings in Bitcoin and Ethereum alone have yielded over $100 million in profits.

Boyaa Interactive is not the only Hong Kong-listed company making large investments in cryptocurrencies.

In March of this year, Ying Universe (HK03700) announced that its board of directors had approved a $100 million budget for the company to purchase cryptocurrencies on any regulated and licensed trading platforms over the next five years.

Guofeng Innovation (HK00290) announced in August that it had purchased Bitcoin worth a total of HK$36 million (excluding trading costs) between March and August.

BlueFocus Interactive (HK08267) disclosed in its 2024 mid-year earnings report that the company holds 142.8539 units of Bitcoin and 848.386 units of Ethereum, with a total cash cost of approximately $8.8 million.

"Blockchain First Stock" Canaan Inc. (Nasdaq-listed) also holds Bitcoin in significant quantities. As of June 30, the company owned 1,133.5 Bitcoins, with a total fair value of $69.9 million at the time.

A-share listed companies are less common in holding Bitcoin. In August of this year, Zhidu Technology (SZ000676) stated on the interactive platform that the company accounts for Bitcoin as an intangible asset and initially measures it at cost; as of December 31, 2023, the carrying amount of the company's intangible assetdigital asset (Bitcoin) was 56.4687 million yuan. In the first quarter of this year, the company sold some of its Bitcoin. In early November, Zhidu Technology announced that it still holds Bitcoin.

In December 2013, the People's Bank of China and four other departments issued the "Notice on Preventing Bitcoin Risks" stating that Bitcoin is not a currency, cannot and should not be used as currency in market circulation. The document also explicitly requires all financial institutions and payment institutions not to conduct business related to Bitcoin.

In the previous week, Bitcoin repeatedly hit new all-time highs. On Wednesday last week, after Trump secured a victory in the election, Bitcoin first surpassed $75,000 per coin, reaching its historical high. On Thursday, after the Fed announced a 25 basis point rate cut, Bitcoin surged amidst the celebrations. It broke through the $80,000 mark on Sunday, reaching a high of over $90,000 on the 12th.

Market funds have been aggressively adding Bitcoin to their portfolios. On January 10th, the first batch of 11 Bitcoin spot ETFs in the US were launched, with total assets under management around $28 billion. By yesterday, this figure has nearly tripled to $82 billion. iShares Bitcoin Trust (IBIT), the ETF spot fund with the largest assets under management in the market, saw its trading volume hit a new record of $4.1 billion on Wednesday, followed by an inflow of $1.1 billion the next day, setting a new record for the largest single-day inflow.

Recently, the assets under management of IBIT surpassed those of the Gold Trust ETF (IAU) for the first time, reflecting a major influx of funds into Bitcoin, while gold has been relatively neglected. This trend can also be observed in the price movements. While Bitcoin soared, gold plunged. On the day the election results were announced last week, gold prices saw their biggest drop in over two years, falling 3.93% over the past week.

Crypto macro analyst Noelle Acheson believes that the Trump administration's introduction of clearer cryptocurrency regulations may lead some investors to favor Bitcoin over gold.

Daily Economic News, in conjunction with Securities Times eCompany and publicly available information.

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Edited by | Chen Kemin Du Yu Gai Yuanyuan Proofreading | Duan Lian Cover Image: Visual China

Daily Economic News compiled from yicai.com, Securities Times eCompany, etc.