HK Asia Holdings Limited, a Hong Kong-based investment firm, is set to raise $8.4 million to expand its Bitcoin reserves. This decision signals the publicly traded company’s strong confidence in digital assets as a long-term asset. As the first in Greater China to adopt a Bitcoin treasury strategy, HK Asia Holdings is positioning itself at the forefront of a growing trend among global firms embracing digital currencies.
Raising Funds for Bitcoin Purchase
HK Asia Holdings Limited, a Hong Kong-based company, plans to launch a convertible note offering to raise approximately $6.7 million as part of an $8.4 million fundraising plan to buy more Bitcoin. The convertible notes can be converted into 10,475,520 shares at $5 per share, representing a potential 2.62% dilution of current shares.
The funds will support Bitcoin purchases, aligning with the company’s strategy to hedge against fiat currency depreciation. The notes will likely carry a low or zero interest rate and convert into equity during a future funding round or at maturity, typically 1-2 years.
The completion of the fundraising plan depends on meeting certain conditions, and listing applications for conversion of shares will be made to the Stock Exchange. The move demonstrates HK Asia Holdings’ continued commitment to its Bitcoin investment strategy, aiming to capitalize on the potential upside of the digital asset.
Bitcoin Attracts Institutional Firms
HK Asia Holdings is not alone in its Bitcoin strategy. In recent years, several firms have adopted similar approaches, integrating cryptocurrency into their balance sheets. For instance, Japanese investment firm Metaplanet announced today that it has acquired 145 additional Bitcoins for approximately $13.6 million, with an average price of $93,327 per coin, which brings the firm’s total holdings to 5,000 BTC. The purchase is part of the firm’s ongoing strategy to build a robust Bitcoin treasury.
U.S.-based MicroStrategy, now known as Strategy, holds over 500,000 BTC, making it a global leader in corporate Bitcoin adoption. These examples highlight a broader shift among institutional investors, including BlackRock and Goldman Sachs, which have increased Bitcoin ETF holdings.
