A Hong Kong-listed company with a total market value of approximately 230 million USD holds Bitcoin worth as much as 226 million USD.
Boya Interactive disclosed that it holds 2,641 Bitcoins, with a total cost of approximately 143 million USD, an average cost of about 54,000 USD per coin; it holds 15,400 units of Ethereum, with a total cost of approximately 42.5781 million USD, an average cost of about 2,756 USD per unit.
Recently, the digital currency market has exploded. Based on this calculation, just in Bitcoin and Ethereum, Boya Interactive's holdings have appreciated by over 100 million USD.
Continuously buying cryptocurrencies
Boya Interactive has been very aggressive in its investment in digital assets. The company has stated: "Purchasing and holding cryptocurrencies is an important initiative for the Group's development and layout of Web3 business, and is also an important component of the Group's asset allocation strategy."
Looking back in history, Boya Interactive began purchasing cryptocurrencies and other digital assets in 2023. By the end of 2023, the company's digital assets totaled 78.6 million RMB. By the end of the first half of this year, the company's digital assets were approximately 1.688 billion RMB. The semi-annual report showed that the digital assets held by the company accounted for as much as 75% of its total assets, and in current assets, the proportion exceeded 90%.
Since July of this year, Boya Interactive has continuously increased its Bitcoin holdings. By August 22 of this year, the company had approximately 2,410 Bitcoins, with an average cost of about 51,900 USD per coin; the number of Ethereum held remained unchanged.
In comparison, Boya Interactive's buying pace for Bitcoin has significantly slowed in the past two months, which is likely directly related to the rise in Bitcoin prices. Especially recently, due to investors betting that Donald Trump’s return to the White House would benefit Bitcoin, its price has surged.
It is worth mentioning that Boya Interactive announced in March this year that it would adopt a new dividend policy: over the next five years, it will continue to distribute no less than 20% of the annual operating profit to shareholders, and a dividend of no less than 5% will be distributed annually from the appreciation profits gained from the purchase of cryptocurrency assets.
At the time of its listing, Boya Interactive attracted market attention. On the first day of its stock listing, it received subscriptions from nearly 77,000 people, with frozen capital of 86.8 billion HKD, making it briefly the 'frozen capital king' of Hong Kong stocks.
However, the overall performance of the company's stock after listing has been poor, with low daily trading volume. Since March of this year, impacted by improved company performance and large-scale investments in cryptocurrencies, its stock trading volume has significantly increased.
Among Hong Kong companies, Boya Interactive is not the only one making large-scale investments in cryptocurrencies.
Yingyu Universe announced that its board has approved a budget of 100 million USD for the company to purchase cryptocurrencies on any regulated and licensed trading platform over the next five years.
Guofu Innovation has purchased Bitcoin worth a total of 36 million HKD (excluding transaction costs).
Blueport Interactive holds a total of 142.8539 units of Bitcoin and 848.386 units of Ethereum, with a total cash cost of approximately 8.8 million USD.
The "first stock of blockchain" Jianan Technology (listed on NASDAQ) has heavily invested in Bitcoin. The company holds 1,133.5 Bitcoins, with a total fair value at that time of 69.9 million USD.
There are not many reports of A-share companies holding Bitcoin.
Zhidu Co., Ltd. (000676) stated on the interactive platform that the company accounts Bitcoin as an intangible asset and conducts initial measurement at cost; the book value of the company's intangible assets—digital assets (Bitcoin) is 56.4687 million RMB.
On December 5, Bitcoin reached a historic moment: the price of one Bitcoin broke through the 100,000 USD mark, setting a new historical high.
Against this backdrop, some cryptocurrency investors who had been continuously increasing their positions began to "liquidate" and exit the market, such as Meitu.
On the evening of December 4, Meitu announced that it began selling the purchased cryptocurrencies in the market starting November 2024. As of December 4, 2024, the company had sold all of its purchased cryptocurrencies, totaling approximately 31,000 units of Ether and 940 units of Bitcoin.
Meitu stated that the total cash consideration for this transaction was approximately 100 million USD and 80 million USD. The company achieved considerable profits from the sale of cryptocurrencies, with gains of approximately 79.63 million USD (about 571 million RMB).
From "huge losses" to "huge profits"
Meitu's first public purchase of cryptocurrencies occurred in the first quarter of 2021. On March 5 of that year, Meitu announced that it purchased 15,000 units of Ether and 379.12 units of Bitcoin in public market transactions, with total prices of approximately 22.1 million USD and 17.9 million USD, respectively, totaling 40 million USD.
On March 17 of that year, Meitu announced that, according to its cryptocurrency investment plan, it further purchased 16,000 units of Ether in public market transactions, at a total price of approximately 28.4 million USD; and 386 units of Bitcoin at a total price of approximately 21.6 million USD.
Subsequently, Meitu continued to increase its holdings of cryptocurrencies. On April 8, 2021, Meitu announced that its wholly-owned subsidiary Meitu Hong Kong, according to the company's cryptocurrency investment plan, again purchased 175.68 units of Bitcoin in public market transactions, at a cost of approximately 10 million USD. Thus, Meitu had continuously accumulated a total cost of approximately 100 million USD in cryptocurrency purchases.
However, Meitu's cryptocurrency investment journey has not been smooth. Due to price fluctuations, the company recorded corresponding impairment losses in both 2022 and 2023.
Relevant announcements show that as of December 31, 2022, Meitu had purchased Ether and Bitcoin units with fair values of approximately 37.3 million USD and 15.6 million USD, significantly down from the purchase prices. Therefore, during the reporting period, Meitu recognized impairment losses of approximately 86.6 million RMB and 198.2 million RMB for the purchased Ether and Bitcoin, respectively. At this point, Meitu was deeply trapped.
However, in 2023, the prices of cryptocurrencies began to show a significant rebound. The 2023 financial report indicated that the fair values of the Ether and Bitcoin held by Meitu were approximately 71.23 million USD and 39.91 million USD, respectively. The company reversed impairment losses of approximately 270 million RMB on already purchased cryptocurrencies. In fact, it wasn’t until February 2024 that the cryptocurrencies purchased by Meitu returned to above the cost price.
Meitu's liquidation of all cryptocurrencies resulted in profits of 570 million RMB, a figure that surpassed the total net profits of the company in 2022 and 2023.
Regarding the profits obtained from the sale of Bitcoin, Meitu has made clear plans: it intends to use 80% of the net proceeds from this sale of cryptocurrencies to pay special dividends; the remaining net proceeds will serve as general operating funds.
