A Small-Cap Hong Kong Stock Holding 2,641 Bitcoin: Who’s Investing in Crypto Now?

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Companies Embracing Bitcoin and Ethereum as Strategic Assets

In a surprising move that underscores the growing institutional adoption of digital assets, a Hong Kong-listed company with a market capitalization of just $230 million holds an astonishing 2,641 Bitcoin (BTC) — valued at nearly $226 million. This revelation has sparked renewed interest in how public companies are integrating cryptocurrencies into their treasury strategies.

The Case of Boyaa Interactive

Boyaa Interactive (HK00434), primarily known as a game developer since its founding in 2004, made headlines on November 12 when it disclosed its cryptocurrency holdings. According to its official announcement:

Despite being a relatively small player by market cap — valued at HK$1.79 billion (approximately $230 million) — Boyaa's crypto portfolio now represents a significant portion of its total worth. At Bitcoin’s peak near $90,000 and Ethereum above $3,400, the unrealized gains for Boyaa exceed $100 million.

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The company has stated that investing in cryptocurrencies is a core part of its Web3 strategy and overall asset allocation plan. As blockchain technology continues to reshape industries, Boyaa sees crypto not just as speculation but as a strategic hedge and innovation enabler.

Why Are Public Companies Buying Crypto?

The decision by firms like Boyaa to hold Bitcoin and Ethereum reflects broader trends:

  1. Inflation Hedge: With global monetary policies shifting, digital scarcity makes Bitcoin an attractive store of value.
  2. Web3 Integration: For tech and gaming firms, holding crypto aligns with future plans in decentralized applications and NFTs.
  3. Treasury Diversification: Especially for smaller-cap firms, allocating capital to high-growth assets can boost shareholder returns.

Other Hong Kong-listed companies are following suit.

Who Else Is Investing in Cryptocurrency?

Ying Universe (HK03700)

In March, Ying Universe announced a $100 million budget approved by its board for purchasing cryptocurrencies over five years. The funds will be deployed on regulated exchanges, signaling confidence in compliance and long-term appreciation.

Guofu Innovation (HK00290)

Between March and August, Guofu Innovation acquired Bitcoin worth HK$36 million (excluding transaction fees). While smaller in scale, this move indicates growing interest among mid-tier firms.

Bluehole Interactive (HK08267)

In its 2024 interim report, Bluehole revealed holdings of:

Canaan Inc. – The Nasdaq-Listed Leader

Known as the “first blockchain stock,” Canaan Inc. (NASDAQ: CAN), a major manufacturer of Bitcoin mining hardware, also holds substantial BTC reserves. As of June 30, it owned 1,133.5 BTC, valued at $69.9 million at the time — reinforcing vertical integration within the crypto ecosystem.

A Contrast: Limited Adoption in Mainland China A-Shares

While Hong Kong and U.S.-listed Chinese firms show increasing appetite for crypto, A-share companies remain cautious.

Zhidi Shares (SZ000676) stands out as one of the few exceptions. In August, it confirmed that it accounts for Bitcoin as an intangible asset under Chinese accounting standards. As of December 31, 2023, the book value of its Bitcoin holdings was RMB 56.47 million (~$7.8 million). Although it sold some positions in Q1 2024, the company confirmed in early November that it still holds Bitcoin.

However, regulatory constraints remain strong. Back in December 2013, the People’s Bank of China and four other ministries issued a joint notice stating that Bitcoin is not legal tender and cannot be used as currency in circulation. Financial institutions and payment providers were barred from offering Bitcoin-related services — a policy stance that remains largely unchanged today.

Market Momentum Behind the Surge

The surge in corporate crypto adoption coincides with explosive growth in the broader market.

Record-Breaking Bitcoin Rally

Bitcoin ETFs Fuel Institutional Demand

The launch of spot Bitcoin ETFs in the U.S. on January 10 marked a turning point:

BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack:

This capital rotation highlights changing investor preferences: Bitcoin is increasingly seen as a superior store of value compared to traditional safe havens like gold.

Last week alone, gold prices dropped 3.93%, with the largest single-day decline in over two years occurring on election day.

Analyst Insights: Why Bitcoin Over Gold?

Noelle Acheson, a respected crypto macro analyst, suggests that expectations of clearer cryptocurrency regulations under a potential Trump administration could further tilt institutional favor toward Bitcoin.

“Bitcoin’s fixed supply and growing regulatory clarity make it more appealing than gold in uncertain macro environments,” she noted.

Unlike gold, which incurs storage and insurance costs, Bitcoin offers portability, divisibility, and verifiable scarcity — features increasingly valued by modern treasuries.

Frequently Asked Questions (FAQ)

Q: Is it legal for Chinese companies to hold Bitcoin?

A: While mainland financial institutions are prohibited from handling Bitcoin transactions, publicly listed companies may hold digital assets as intangible or investment assets if compliant with accounting standards and disclosure rules — especially those listed outside mainland China.

Q: Why do companies buy Bitcoin instead of keeping cash?

A: Companies view Bitcoin as a long-term hedge against inflation and currency devaluation. Its limited supply (capped at 21 million coins) contrasts with fiat currencies that can be printed indefinitely.

Q: How does holding crypto affect a company’s financial statements?

A: Under most accounting frameworks (e.g., IFRS or U.S. GAAP), cryptocurrencies are treated as intangible assets or inventory. They’re recorded at cost and subject to impairment if market value drops significantly.

Q: Could more Asian firms follow this trend?

A: Yes — particularly in Hong Kong and Singapore, where regulators are developing clearer crypto frameworks. As compliance pathways emerge, more firms may allocate portions of their treasuries to digital assets.

Q: What risks do companies face when holding crypto?

A: Key risks include price volatility, cybersecurity threats (e.g., exchange hacks), regulatory uncertainty, and accounting complexities due to fluctuating valuations.

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The Future of Corporate Crypto Holdings

As macroeconomic conditions evolve and digital asset infrastructure matures, more public companies — especially in tech and fintech — are likely to adopt Bitcoin and Ethereum as part of their capital strategy.

For investors, these moves signal confidence in blockchain’s long-term viability and offer indirect exposure to crypto markets through equity positions.

Whether this marks the beginning of a broader shift or remains limited to forward-thinking firms will depend on regulatory developments, market stability, and continued institutional acceptance.

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Note: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any investment decisions.