Boyaa Interactive, a renowned Chinese gaming company listed on the Hong Kong Stock Exchange with a portfolio including popular games like Mahjong Games, Texas Hold’em, Ant Wars, Chinese Chess, Fight the Landlord, Boyaa Ball Pool, and Big Two Poker, has announced plans to invest a substantial $100 million in cryptocurrencies, predominantly Bitcoin (BTC) and Ethereum (ETH). This strategic move signifies a pivotal shift in the company’s investment portfolio and aligns with the broader trend of traditional companies venturing into the crypto space.
The company’s foray into digital assets is detailed in a stock exchange filing, where Boyaa emphasised the strategic importance of this move for the development of Web3 technology. According to the filing, the iGaming industry, with its strong emphasis on communities, users, and virtual assets, presents a fertile ground for the application of Web3 technology.
Boyaa’s outlined plan involves allocating $45 million each to acquire BTC and ETH, with the remaining $10 million earmarked for stablecoins like Tether (USDT) and Circle’s (USDC) within a 12-month period. This substantial investment constitutes approximately 38% of the company’s total assets, reflecting its commitment to embracing the opportunities presented by virtual assets and the Web3 landscape.
Notably, Boyaa’s digital asset initiative coincides with Hong Kong’s growing ambition to become a global hub for crypto and Web3 industries. The local authorities have introduced a new digital asset regulatory regime, accepting applications for crypto trading platform licences, and allowing exchanges to serve retail customers. In light of this, Boyaa Interactive highlighted the facilitating environment created by the Hong Kong government to promote the sustainable development of virtual asset transactions.
This strategic shift for Boyaa Interactive comes at a time when the crypto industry is experiencing a resurgence in 2023 after the challenges of the previous year’s crypto winter. 2023 has brought a more positive outlook for the industry, with many cryptocurrencies consistently demonstrating strong performance.
The company’s financial strength is evident in its impressive 119% year-on-year increase in net profits during the first quarter of 2023, providing a robust foundation for its venture into the digital asset space.
While the board of directors has laid out a comprehensive plan for the $100 million investment, shareholder approval is pending due to the substantial nature of the initiative. The board aims to streamline the acquisition process by proactively ensuring fund availability, avoiding the need for prior approval for each purchase. This demonstrates Boyaa Interactive’s commitment to digital assets and its confidence in the crypto market’s potential for growth.
Boyaa Interactive’s move into the crypto market is not only a testament to its adaptability but also reflects a broader trend of traditional companies diversifying into digital assets. The company joins the ranks of public companies globally, embracing cryptocurrency investments amid regulatory shifts in China’s crypto landscape, from Bitcoin mining crackdowns to the introduction of the Chinese Central Bank Digital Currency (CBDC).
Boyaa Interactive’s $100 million investment plan represents a significant strategic shift, marking its entry into the crypto market and aligning with the evolving landscape of Web3 technology. The move highlights the company’s readiness to navigate the dynamic world of cryptocurrencies while emphasising the compatibility of iGaming with the transformative potential of Web3. Boyaa Interactive’s initiative underscores the fusion of the worlds of cryptocurrencies and iGaming, pointing towards a future where these two industries mutually benefit and propel each other’s growth in different ways.
One such example can be illustrated by the increasing number of iGaming operators who are integrating popular cryptocurrencies like Bitcoin and Ethereum into their payment options. Read more here.
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