Check out the latest crypto moves by 8 Hong Kong-listed firms: some investing over $100 million, with share prices up as much as 3.6x from年初 levels
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Check out the latest crypto moves by 8 Hong Kong-listed firms: some investing over $100 million, with share prices up as much as 3.6x from年初 levels
This article reviews eight Hong Kong-listed companies that have joined the Web3 wave this year.
Navigating Web3 tides with focused insightsBy Nancy, PANews
As Hong Kong's Web3 environment becomes increasingly open, in addition to multiple Hong Kong investment firms making large purchases of U.S. spot Bitcoin ETFs, an increasing number of Hong Kong-listed stocks are also entering the crypto arena. This article by PANews outlines eight Hong Kong-listed companies that have joined the Web3 wave this year. These institutions not only make significant allocations to crypto assets but also integrate their core businesses with Web3 technologies and invest in related crypto projects to promote business diversification—and even transformation—providing a certain boost to their stock prices.
Boya Interactive: Plans to Buy Up to $100 Million in Cryptocurrencies, Driving Quarterly Profit Growth of 1130%
Boya Interactive is a Hong Kong-listed gaming company that began exploring the crypto market in the second half of last year, aiming to fully transform into a Web3-focused listed company. As of May 16, Boya Interactive’s share price had risen nearly 3.6-fold from its年初 level, reaching its highest point since February 2016.
In August 2023, Boya Interactive announced that its board had approved a budget of $5 million to purchase cryptocurrencies such as Bitcoin and Ethereum, funded by cash reserves generated from operations in Hong Kong and overseas. Several months later, the company announced plans to purchase up to $100 million worth of cryptocurrencies—including Bitcoin, Ethereum, and USDT—over the next 12 months, stating that acquiring and holding digital assets is a key part of its strategic business layout in Web3 and its overall asset allocation strategy.
According to data disclosed in March this year, Boya Interactive purchased 1,110 BTC at an average price of approximately $41,790 each, 14,855 ETH at an average price of around $2,777 each, and about 8 million USDT. Based on current prices (as of May 16), the company has realized unrealized gains exceeding $30.335 million. According to Boya Interactive’s latest announcement, its first-quarter profit surged by 1130% year-on-year, largely driven by cryptocurrency investments.
In addition to direct crypto purchases, Boya Interactive has invested in multiple Web3 projects. In April, it signed a subscription agreement with Pacific Waterdrip Digital Asset Fund SPC, investing $1 million and forming a strategic partnership focused on Web3 game development and the Bitcoin ecosystem; the fund primarily targets metaverse, NFT, and Web3 infrastructure blockchain projects. Boya Interactive also participated in a $1.25 million seed round for Web3 asset data platform RootData and invested $500,000 in Web3 venture fund AWAKENING VENTURES, which focuses on programmable Bitcoin networks, Web3 games, Easy Smart Earn (ESE), and application-layer infrastructure protocols.
Moreover, Boya Interactive revealed it has established a dedicated Web3 research and operations team focused on developing Web3 games and related infrastructure, including wallets and DeFi products.
Coolpad Group: Has Purchased $27.86 Million in Crypto Assets, Plans to Spin Off Bitcoin Mining Subsidiary for U.S. IPO
Hong Kong-listed Coolpad Group is a Chinese enterprise specializing in mobile communication terminal equipment and software development, with smartphones as its core business. However, the company has faced years of losses. According to Coolpad’s interim financial report for 2023, revenue was HK$172 million, while net loss reached HK$117 million. Its peak revenue was HK$24.9 billion back in 2014. Due to delayed release of its 2023 annual results, the stock has been suspended for an extended period, with audits expected to be completed by the end of June 2024.
Given poor performance in its smartphone business, Coolpad Group has begun exploring new ventures. Recently, the company announced it is actively seeking opportunities to enter the digital currency sector, viewing this as a chance to expand its crypto-related operations, diversify its business, and create alternative revenue streams. Its wholly-owned subsidiary Digital Tech has acquired $27.86 million in crypto assets: between April 16 and May 8, 2024, it spent approximately $23.84 million to acquire 1.5 million shares of Bitcoin mining company Cleanspark (CLSK) at an average price of about $15.89 per share; between April 19 and May 8, it spent around $4.03 million to acquire 113,000 shares of IBIT at an average price of about $35.64 per share. Based on current prices (as of May 16), Coolpad has realized unrealized gains exceeding $2.074 million.
Notably, beyond launching a cryptocurrency mining-related business before the end of 2023 and making substantial capital expenditures on property, plant, and equipment—including spending over $12 million between August and November 2023 on computing servers for crypto mining—Coolpad is now considering spinning off its wholly-owned subsidiary Coolbit Technologies Limited for a potential independent listing on the Nasdaq in the United States. The subsidiary launched digital currency investment activities in the second half of last year, focusing on Bitcoin mining.
Lan Kwai Fong Interactive: Increases Crypto Purchase Limit to $6 Million
Mobile game developer Lan Kwai Fong Interactive began entering the Web3 space and investing in related assets last year. In September 2023, the company announced purchases of a total of 92.4712 BTC through public market transactions on June 15, July 7, August 8, and August 17, 2023. Within the 12 months prior to the announcement, Lan Kwai Fong had also spent approximately $2.7 million to buy 93.85 BTC.
Since the beginning of 2024, Lan Kwai Fong has accelerated its expansion into the crypto sector. In late January, the company announced that its board had authorized increasing the maximum amount for purchasing cryptocurrencies in public markets from $5 million to $6 million. It has also successively announced investments in several crypto projects, including BiHelix—an infrastructure player in the Bitcoin RGB domain—Merlin Chain, a Bitcoin Layer 2 scaling solution, and XLink, a cross-chain bridge for Bitcoin.
As of May 16, Lan Kwai Fong’s share price had nearly tripled from its年初 level, hitting its highest point since March 2020.
Kamsa Innovation: Plans $5 Million HKD Investment in Cryptocurrencies, With Prior Strategic Moves
Hong Kong-listed Kamsa Innovation is actively advancing its Web3-related business initiatives, believing that cryptocurrency investments will help the group better adapt to evolving market conditions and facilitate a proactive transformation from traditional finance toward innovative and technology-driven financial services.
As early as August 2023, Kamsa Innovation’s wholly-owned subsidiary Fuqiang Securities submitted an application to the Hong Kong Securities and Futures Commission (SFC) to engage in virtual asset-related activities, aiming to offer investors more diversified services and unlock new revenue streams. Shortly afterward, Kamsa announced another move into the virtual asset sector: its wholly-owned subsidiary Fortune Genesis Holdings Limited planned to acquire from Chairman Liu Zhiwei a $1.6 million stake in Summer Feeder Fund Limited, which invests in SEBA Bank AG—a financial institution primarily engaged in banking services related to cryptocurrencies.
Recently, Kamsa Innovation announced that its board has approved a budget of HK$5 million to be used over the next year for investments in cryptocurrencies and virtual asset funds. The budget will mainly support purchases of cryptocurrencies (primarily Bitcoin) on regulated and licensed trading platforms, and subscriptions to compliant Hong Kong virtual asset funds (i.e., funds managed by managers licensed under Category 9 regulated activities of the Securities and Futures Ordinance, permitted to allocate more than 10% of their portfolio value to virtual assets or indirect investments in virtual assets). Additionally, Kamsa previously invested in virtual asset management firm MaiCapital, stored-value payment tool company Circle Tech, digital exchange TideBit, digital asset bank SEBA Bank, and most recently invested $1.5 million via its wholly-owned subsidiary Chuangqi International Limited into Web3 music startup Star Nest.
Since announcing its plan to invest in cryptocurrencies, Kamsa Innovation’s share price has seen only single-digit growth as of May 16, but reached its highest level since December 2020.
Ying Cosmos: Plans $100 Million Investment in Cryptocurrencies Over Next Five Years
Ying Cosmos is a Hong Kong-listed interactive social platform that rebranded in 2022 after expanding into the metaverse sector. Its product portfolio includes Inke Live, Duiyuan, Super Like, and Jimu, covering live streaming, matchmaking, and social networking. According to Ying Cosmos’ 2023 annual financial report, it achieved total revenue of RMB 6.84 billion and net profit of USD 400 million, representing a year-on-year increase of 337.8%.
In March this year, Ying Cosmos announced that cryptocurrency investment is a key component of its Web3 business development and asset allocation strategy. Its board has approved a $100 million budget to purchase cryptocurrencies over the next five years on any regulated and licensed trading platforms, using existing cash reserves. While the announcement did not trigger a significant rise in its stock price, it still reached a new high for the year.
CMGE Technology: Partners to Develop Web3 Games and Will Purchase Virtual Assets
CMGE Technology, a Hong Kong-listed global IP-based game operator, reported total operating revenue of RMB 2.6 billion in 2023 and turned a profit with net income of RMB 53.79 million. CMGE is actively expanding into the Web3 space—not only as a member of the Hong Kong Web3.0 Association but also recently partnering with Hashkey Group to advance the development of Web3 games and gaming platforms. The company will open an account on HashKey Exchange to purchase virtual assets, and HashKey Group will provide institutional-grade virtual asset custody services to CMGE.
Potentially influenced by this news, CMGE’s share price rose over 23.8% as of May 16, reaching its highest level so far in 2024.
Huake Intelligent Investment: To Deepen Presence in Crypto Markets and Capture Investment Opportunities
Huake Intelligent Investment is a cross-border, multi-sector investment platform listed on the Main Board of the Hong Kong Stock Exchange. In addition to opening an account on HashKey Exchange last year, the company recently announced that its wholly-owned subsidiary signed a fund subscription document and limited partnership agreement on April 23, 2024, to invest in a fund named "Tide Investment One Limited Partnership" established and managed by Tide Capital. Huake stated that the investment aims to deepen its exposure to digital assets and cryptocurrency markets and leverage Tide Capital’s professional expertise to capture investment opportunities in the field.
Since the announcement, Huake Intelligent Investment’s share price has shown no significant movement.
Victory Securities: Hong Kong’s First Retail Virtual Asset Broker, Already Launched Crypto Trading Services
Victory Securities is Hong Kong’s first retail virtual asset brokerage. According to data disclosed by Executive Director Chen Peiquan at the end of 2023, its virtual asset trading service achieved an average monthly transaction volume of $10 million and has already turned profitable.
This year, Victory Securities not only launched VictoryX, a stock-and-crypto trading app allowing users to trade both equities and cryptocurrencies on the same platform, but also formed deep partnerships with crypto projects such as HashKey Exchange and TokenPocket. Additionally, it became the only participating securities firm among Hong Kong’s首批 spot Bitcoin and Ethereum ETFs to accept physical in-kind subscriptions.
From a market perspective, after a prolonged period of stagnation, Victory Securities’ share price began rising sharply at the end of November last year and hit a record high in April this year.
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