Boyaa Interactive, a Chinese board and card game company listed on the Hong Kong Exchanges and Clearing Limited, has announced plans to acquire around $100 million worth of cryptocurrency assets, mainly BTC and ETH.
Boyaa’s Purchase of BTC and ETH
The company’s board of directors believes that purchasing crypto assets is crucial for strengthening its presence in the Web3 landscape.
According to a document released by the Hong Kong Exchanges and Clearing Limited, Boyaa Interactive has proposed acquiring the assets within a 12-month period, starting from the Extraordinary General Meeting (EGM).
Boyaa intends to send a notice for the EGM and any other necessary information as per the listing rules to shareholders by November 30.
The company plans to allocate approximately $90 million equally between ETH and BTC, with the remaining $10 million being used to purchase stablecoins Tether (USDT) and USD Coin (USDC).
Boyaa emphasizes that it does not intend to pay premiums exceeding 10% of market prices for these digital assets. The company plans to fund the potential acquisition using its idle cash reserves.
The board will be responsible for determining which cryptocurrencies to acquire, their allocation ratios, and the optimal purchase timing.
Why Bitcoin and Ethereum?
In the documentation, Boyaa has emphasized its investment in Bitcoin and Ethereum and provided insights into its rationale. Specifically, the company aims to acquire cryptocurrencies that align with its business development strategies, passing rigorous risk management tests.
Additionally, Boyaa seeks to invest in cryptocurrencies with strong market liquidity and significant market values. Notably, Bitcoin, Ethereum, USDC, and USDT are among the assets with the highest market liquidity.
Reports suggest institutional investors have poured billions into BTC and ETH. Institutional investors are looking to take advantage of the long bull season also seemingly nearing.
Hot Take: Boyaa’s Strategic Move into Cryptocurrency
Boyaa Interactive’s decision to acquire $100 million worth of cryptocurrency assets is a bold move that reflects growing institutional interest in Bitcoin and Ethereum. By strategically investing in these digital assets, Boyaa aims to position itself as a key player in the evolving Web3 landscape. This move also underscores the increasing significance of cryptocurrencies in traditional corporate strategies, signaling a new era of adoption and integration in diverse industries. As institutional investment in crypto continues to rise, Boyaa’s foray into this space may pave the way for similar initiatives across various sectors.
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