Hong Kong’s HK Asia expands Bitcoin holdings after board approval

Hong Kong-based investment holding company HK Asia will buy more Bitcoin after securing board approval to expand its cryptocurrency holdings.

According to a Feb. 23 announcement, the company’s board of executive and non-executive directors approved plans to increase the company’s Bitcoin investments, allowing HK Asia to purchase an additional 7.88 BTC. 

The acquisition, made on Feb. 20 through an open market cryptocurrency exchange, was financed using “proceeds from the Group’s internal resources” and cost HK$5,936,906.26, roughly $761,705.

This move follows HK Asia’s first Bitcoin purchase on Feb. 16, when the company bought 1 BTC. With the latest purchase, HK Asia’s total Bitcoin holdings now stand at 8.88 BTC, acquired at an average price of $97,021 per coin.

The company clarified that the transaction didn’t trigger any mandatory disclosure requirements under Hong Kong Stock Exchange rules, as the investment remained below the 5% threshold required for notification. 

Rather, it was announced voluntarily to keep shareholders informed of its growing interest in cryptocurrencies, HK Asia added.

The market didn’t take long to react. After the company’s first Bitcoin buy, its stock price nearly doubled overnight. Following the latest announcement, shares saw another boost, climbing around 5.7% by midday on Feb. 24.

HK Asia joins a number of publicly traded firms adding Bitcoin to their balance sheets to diversify assets and boost company earnings by capitalizing on its long-term growth potential. Companies like Strategy and MetaPlanet have led the charge with periodic Bitcoin investments.

On Feb. 11, U.S.-based KURL Technology Group disclosed adding $10 million worth of BTC to its holdings, bringing it to 610 BTC. A day prior, Japanese mobile game studio Gumi said a plan to purchase Bitcoin worth JPY 1 billion by May had been approved.