A Hong Kong-based investment company has secured board approval to expand its Bitcoin portfolio.
Following a sharp rise in its share price after it initially bought Bitcoin a week ago, HK Asia Holdings Limited has now invested in an additional 7 BTC.
After its shares doubled in value following its first Bitcoin acquisition last week, HK Asia Holdings Limited has increased its Bitcoin holdings to nearly 9 BTC.
In a recent announcement on February 23, HK Asia, a Hong Kong-based investment firm, confirmed that its board sanctioned additional Bitcoin purchases and revealed that it acquired 7.88 BTC on February 20 at a total cost of around $761,705.
HK Asia disclosed that it used internal funds for its most recent Bitcoin purchase, raising its total holdings to roughly 8.88 BTC. The company paid an average cost per coin of $97,021, summing up to around $861,500.
HK Asia’s February 16 announcement about purchasing 1 BTC spurred a wave of investor activity, pushing its stock price up nearly 93% when trading ended on February 17.
By the lunch break on the Hong Kong Stock Exchange on February 24, HK Asia’s shares traded at approximately 6.66 Hong Kong dollars (86 cents) after rising 5.7%, according to Google Finance.
With a 1,700% increase in value this year, HK Asia’s stock could close above its June 2019 peak of 6.50 Hong Kong dollars (84 cents) if its current price holds.
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HK Asia decided to invest in Bitcoin as part of a broader trend where publicly traded firms leverage cryptocurrency investments to improve their earnings.
In its statement earlier this month, HK Asia’s board pointed to the “increasing popularity of cryptocurrencies in the commercial world” as a driving force behind its decision to buy Bitcoin.
In its most recent note, the firm stated that its Bitcoin acquisitions fall below the mandatory reporting threshold, yet it opted to disclose them “on a voluntary basis.”
Over the past day, Bitcoin’s price has remained relatively unchanged, currently sitting at $95,537 after a slight decline of less than 1%. Since February 5, Bitcoin has stayed below $100,000 and is now 12% lower than its January 20 peak of $108,786, according to CoinGecko.
