Boyaa Interactive International Limited, a Hong Kong-listed gaming company, plans to diversify its portfolio by investing part of its surplus cash in Bitcoin.
The company recently revealed, through a statement, that it is considering the acquisition of cryptocurrencies, specifically Bitcoin and Ethereum, as part of a new strategy that will allow it to both advance towards the Web3 ecosystem and diversify its assets.
According to the company, the board of directors believes that holding cryptocurrencies represents “a fundamental movement” for Boyaa Interactive to advance the development and expansion of its business towards Web3.
In addition, the board believes that these digital assets will be “a “significant component” in the company's asset allocation strategy.
Although it is currently just a proposal that requires approval from the company's shareholders to be implemented, the statement expresses the growing interest of companies from different sectors in gaining exposure to Bitcoin and cryptocurrencies as a new class of alternative investment assets.
MicroStrategy, one of the pioneer companies in investing its treasury surpluses in Bitcoin, currently holds a total of 158.400 BTC, valued at more than $5.700 million dollars.
Boyaa Interactive could invest up to $100 million in Bitcoin
The Hong Kong-based gaming company is considering Invest up to $100 million in cryptocurrencies like Bitcoin and Ethereum In a period of one year, as expressed in the release, which was shared on Monday.
In this statement, Boyaa Interactive points out that these cryptocurrencies, the two largest on the market, have Good liquidity, high market value and wide recognition worldwide. In addition to this, he also indicated that both Bitcoin and Ethereum have a great potential for future appreciation, which can help strengthen the gaming company's business strategy as well as its growth and development.
However, while acknowledging all these features, as well as the innovation of Bitcoin and Ethereum, Boyaa Interactive also highlighted that the crypto market is volatile, so it reserves the right to buy or sell cryptocurrencies, according to market conditions at a given time.
45% of funds will go to Bitcoin
If the aforementioned cryptocurrency acquisition proposal is approved, Boyaa Interactive would be allocating the 45% of funds invested in Bitcoin, that is, $45 million dollars.
Others $45 million dollars would be invested in Ethereum, currently the second most capitalized cryptocurrency in the industry and, $10 million remaining, in major stablecoins, Tether (USDT) and USD Coin (USDC).
In the statement shared, Boyaa Interactive included a brief description of each of the cryptocurrencies it plans to start investing in.
Due to the volatility of the crypto market, the company stressed the importance of shareholders approving the investment strategy in advance. It emphasized that, in the cryptocurrency sector, the acquisition of crypto assets must be carried out at the most opportune times, so requesting shareholder approval for each cryptocurrency acquisition operation would not be viable.
Boyaa Interactive shareholders will receive a circular regarding the proposal on or before November 30th, so that they can meet and discuss whether or not to approve the investment of Boyaa Interactive's surplus cash in Bitcoin, Ethereum and other existing cryptocurrencies with large capitalization.
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