David Edwards
On February 17, shares of Hong Kong-based investment firm HK Asia Holdings Limited almost doubled in value following the company’s announcement that it had bought one Bitcoin (BTC).
One Bitcoin Causes a Market Frenzy
A filing dated February 16 states that HK Asia used internal funds to purchase 1 BTC on February 13 for about $96,150. According to Google Finance statistics, the company’s shares rose 93% on the Hong Kong Stock Exchange (HKEX) after the announcement, closing at HK$5.50 (71 cents), which is close to its June 2019 peak of HK$6.50 (84 cents).
At about HK$3.12 (40 cents), trading started, but by the time the market closed, it had soared.
The Use of Bitcoin by Public Companies Is Growing
The board of HK Asia attributed their decision in large part to the growing acceptance of cryptocurrencies in commercial finance. The business is one of many publicly traded companies that are bolstering their financial reserves by investing in Bitcoin.
Ming Shing Holdings, a company based in Hong Kong, disclosed last month that Lead Benefit, a subsidiary, had purchased 500 Bitcoins for a total of $47 million, at an average price of $94,375 per Bitcoin. In spite of the investment, Ming Shing’s stock did not move and has since dropped by about 40% this year.
The Effect of Bitcoin on International Markets
On the other hand, since it started buying Bitcoin in April 2023, Tokyo-based investment company Metaplanet has experienced a 3,900% increase in its stock price in the last year. On February 17, the company bought an extra 269.4 BTC, increasing its total Bitcoin holdings to 2,031.5 BTC, which is worth $194.7 million.
HK The Strategic Viewpoint of Asia
In the face of increasing global economic uncertainties, the board of HK Asia referred to Bitcoin as a “dependable store of value.” The company underlined that fiat currencies are under pressure to depreciate as a result of government stimulus plans and an expanded money supply.
The corporation sees the single Bitcoin purchase as a strategic move to better fit with the changing global financial ecosystem, notwithstanding its symbolic significance.
