Boyaa Interactive Bets Big on Bitcoin and Ethereum with $100 Million Investment Plan

Boyaa Interactive Bets Big on Bitcoin and Ethereum with $100 Million Investment Plan
Photo by Chris Liverani / Unsplash

In a bold stride into the digital asset arena, Boyaa Interactive, a titan in China's board and card game industry, has declared its plan to channel a whopping $100 million into cryptocurrencies, namely Bitcoin (BTC) and Ethereum (ETH), within the coming year. This significant decision underscores the company's acknowledgement of the burgeoning interest in digital assets and the recent regulatory transformations in Hong Kong.

Renowned for an array of web-based and mobile games, including crowd favorites like Remi and Cangkulan in Indonesia, Boyaa Interactive has been on a notable ascent. The company forecasts an eye-catching 140% surge in profits in just the first nine months of 2023. Having racked up a staggering $383.1 million in trailing twelve-month revenue, Boyaa Interactive is now poised to be a trailblazer in digital asset investments within the gaming sector.

The Board of Directors at Boyaa Interactive has emphasized the strategic significance of this move, marking cryptocurrency investment as an integral component of their business expansion into the Web3 realm. This strategy dovetails with their broader vision of diversifying holdings and seizing new opportunities in the rapidly evolving digital landscape. In an official proclamation, the company delineated its comprehensive strategy, remarking:

"The Board of Directors sees the acquisition and holding of cryptocurrencies as a pivotal move for the Group’s venture into the Web3 domain and a key part of our asset allocation strategy. The authorization for this purchase will be sought from the Shareholders for the next 12 months."

This ambitious investment blueprint zeroes in on acquiring Bitcoin and Ethereum, with each expected to comprise roughly $45 million of the total outlay. Additionally, a $10 million allocation is reserved for stablecoins like USDT and USDC.

Recognizing the gravity of this strategic pivot, the Board is soliciting shareholder endorsement for the venture into digital assets. The intended purchases are slated to occur on regulated and licensed trading platforms, with HashKey Exchange, sanctioned by the Securities and Futures Commission of Hong Kong, earmarked as a primary venue.

In light of the volatile nature of the cryptocurrency market, Boyaa Interactive is seeking a 12-month approval window from its shareholders, noting that obtaining prior consent before each transaction would be impractical.

The company views the allocation of a portion of its idle reserves to cryptocurrencies as a diversified approach to capital management. As mentioned in the official press release:

"The allocation of part of the Group’s idle reserve funds to cryptocurrencies as a diversified means of holding cash for capital management is also an important arrangement for the Group’s asset allocation."

This strategic decision by Boyaa Interactive marks a significant moment in the intersection of the gaming industry and the digital asset space. As cryptocurrencies continue to gain traction globally, Boyaa's move could set a precedent for other major players in various industries to explore similar avenues. The company's venture into the Web3 domain, coupled with its substantial investment in Bitcoin and Ethereum, signals a new era of corporate engagement with digital assets, potentially reshaping how companies view and manage their financial reserves in the digital age.