Boyaa Interactive, a gaming company based in China and listed on the Hong Kong Stock Exchange, has disclosed its intention to invest up to $100 million in cryptocurrencies, primarily in Bitcoin (BTC) and Ether (ETH). This move is set to be executed within the next year, signifying a strategic shift to boost the company’s Web3 business development.
In a recent stock exchange filing, Boyaa Interactive outlined its plan to diversify its investment portfolio in digital assets. The proposed strategy includes allocating $45 million each for the acquisition of BTC and ETH, while the remaining $10 million is earmarked for stablecoins, specifically Tether (USDT) and Circle’s USD Coin (USDC). The company emphasized that this decision is crucial for paving its way in the Web3 domain, considering the high compatibility of its online gaming business with Web3 technology.
Boyaa Interactive’s investment plan is subject to shareholder approval. The company has announced that it will provide detailed information to its shareholders on or before November 30, as per the filing. The funding for these cryptocurrency purchases is slated to come from the company’s existing cash reserves, and the timing of the buys will be contingent on market conditions.
This $100 million cryptocurrency acquisition plan represents a significant investment for Boyaa Interactive, accounting for approximately 38% of the company’s total assets. The company’s decision to venture into digital assets is reflective of Hong Kong’s growing stature as a hub for the cryptocurrency and Web3 industries.
The Hong Kong Government has been actively working to foster a conducive environment for the development of the virtual asset market. This year, Hong Kong introduced a new regulatory framework for digital assets, which includes accepting applications for cryptocurrency trading platform licenses and permitting exchanges to cater to retail customers.
Boyaa Interactive’s foray into the cryptocurrency market highlights the broader trend of traditional companies exploring and integrating digital assets into their business models, particularly in regions with supportive regulatory landscapes like Hong Kong.
