Boyaa Interactive, a board and card game company based in China and listed on the Hong Kong Exchanges and Clearing Limited, has announced plans to acquire approximately $100 million worth of cryptocurrency assets, primarily BTC and ETH.
This strategic business decision comes when institutional crypto investment rises, with Bitcoin and Ethereum emerging as major beneficiaries.
The company’s board of directors suggested that buying crypto assets is vital to helping bolster 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. The duration commences upon the proposal’s passage in the Extraordinary General Meeting (EGM).
Boyaa has also stated that a notice for the EGM and any other necessary information as per the listing rules will be sent to the shareholders in the coming days, on or before November 30.
The document began by referencing a voluntary announcement made on August 10 by the company, which proposed the purchase of crypto.
This prominent firm is looking to acquire two primary assets: Bitcoin and Ethereum. According to reports, approximately $90 million will be allocated equally between ETH and BTC. The remaining $10 million will be used to purchase stablecoins Tether (USDT) and USD Coin (USDC).
The company emphasizes that the potential acquisitions will depend on bidding and asking prices for cryptocurrencies in the open market. Boyaa does not intend to pay premiums exceeding 10% of the market prices for these digital assets. The company plans to fund the potential acquisition using its idle cash reserves.
The board is responsible for determining which cryptocurrencies to acquire and their respective allocation ratios, including the optimal purchase timing.
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.
Recently, large assets such as BTC and ETH have been gaining massive numbers in institutional investments. Reports suggest institutional investors have poured billions into the two significant crypto assets. Institutional investors are looking to take advantage of the long bull season also seemingly nearing.