Hong Kong Investment Firm HK Asia Increases Bitcoin Holdings After Share Price Surge

HK Asia Holdings Limited, a Hong Kong-based investment firm, has significantly increased its Bitcoin holdings, following a dramatic surge in its share price after its initial Bitcoin purchase. In a recent announcement on February 23, the firm revealed that its board had approved an additional investment in Bitcoin, which led to the acquisition of approximately 7.88 BTC, worth around $761,705.

This new purchase brings the firm's total Bitcoin holdings to around 8.88 BTC, with an average cost of $97,021 per coin, totaling approximately $861,500. The purchase was funded through internal resources, according to the company.

HK Asia’s first Bitcoin acquisition came just a week earlier, on February 16, when it purchased 1 BTC. The announcement of that purchase caused a surge in the firm’s stock price, which nearly doubled when trading resumed on February 17. The stock price soared by nearly 93%, closing at a much higher value than the previous trading session.

As of February 24, HK Asia's shares were up about 5.7%, trading at around 6.66 Hong Kong dollars (approximately 86 cents), according to Google Finance. If this price holds, the firm’s stock could potentially close above its all-time high of 6.50 Hong Kong dollars (84 cents) from June 2019. The stock has already surged by an impressive 1,700% this year.

The firm’s move to increase its Bitcoin holdings aligns with a growing trend among publicly traded companies purchasing cryptocurrencies as a way to enhance earnings. In its earlier announcement this month, HK Asia highlighted the increasing popularity of cryptocurrencies in the commercial sector as a key driver behind its decision to invest in Bitcoin.

Despite Bitcoin's price fluctuation, with cryptocurrency currently trading below the $100,000 mark, HK Asia's Bitcoin purchases remain under the legal threshold that requires disclosure. The firm made its announcements voluntarily, as part of its commitment to keeping investors informed.

Currently, Bitcoin is trading flat, down less than 1% at $95,537. The cryptocurrency has been hovering below the $100,000 level since February 5, and is down around 12% from its peak of $108,786 on January 20, according to CoinGecko.

As Bitcoin continues to attract the attention of institutional investors and publicly traded companies, HK Asia's foray into cryptocurrency investments underscores the growing acceptance and interest in digital assets within the financial world.