Hong Kong-based gaming company Boyaa Interactive announces bold strategy to invest in Bitcoin and Ethereum, signaling growing acceptance of digital assets in corporate treasury management.
Hong Kong-based gaming company Boyaa Interactive is making headlines with its recent announcement to diversify its treasury reserves into cryptocurrency. The company has outlined a bold strategy to invest $45 million in Bitcoin (BTC) as a part of its asset allocation strategy. This move is not just a one-off purchase but a part of a larger $100 million acquisition mandate that Boyaa Interactive is seeking to implement over the next 12 months.
The acquisition mandate that Boyaa Interactive is proposing to its shareholders has several key parameters. Firstly, the mandate will span 12 months following the approval of an ordinary resolution at the Extraordinary General Meeting. Within this period, the company plans to allocate $45 million each to acquiring Bitcoin and Ethereum (ETH), with the remaining $10 million earmarked for stablecoins such as Tether USD (USDT) and USD Coin (USDC).
The focus on cryptocurrencies like BTC and ETH aligns with Boyaa's business strategy, indicating a belief in the long-term value of these digital assets. The company has set a maximum premium of 10% on the market price for these purchases, which will be funded from the Group's idle cash reserves.
Boyaa Interactive is taking a transparent approach by involving its shareholders in this significant decision. The company plans to dispatch a circular by November 30, 2023, providing detailed information about the proposed acquisitions and the specifics of the mandate. This document will give shareholders the necessary information to make an informed decision on the authorization of the acquisition mandate.
The decision to invest such a substantial amount in cryptocurrencies could have a broader market impact, signaling confidence in the stability and growth potential of digital assets. By conducting acquisitions on licensed trading platforms like HashKey Exchange, Boyaa Interactive is also emphasizing the importance of regulatory compliance and security in its investment strategy.
Boyaa Interactive's move to invest in cryptocurrencies is a significant step that highlights the growing acceptance of digital assets as a legitimate component of corporate treasury management. As the landscape of corporate investments continues to evolve, Boyaa Interactive's foray into cryptocurrency may inspire other companies to consider diversifying their own treasury assets into digital currencies.