HK Asia Holdings Limited expanded its Bitcoin holdings to 8.88 BTC after an initial purchase drove a 93% stock surge. The firm cited growing crypto popularity as a key reason for its investment.
HK Asia Holdings Limited now has almost 9 BTC worth of Bitcoin. This is because the price of its stock went up after it bought its first BTC.
On February 23, the Hong Kong-based investment company said that its board “has approved the Company to further increase its investment in Bitcoin” For about $761,705, it bought about 7.88 BTC on February 20.
The company said that the purchase was paid for with money from inside the company. With this buy, the company now has 8.88 BTC in Bitcoin, which is worth an average of $97,021 per coin and a total of $861,500.
When markets opened again on February 17, HK Asia’s share price had gone up by almost 93% after buying 1 BTC on February 16.
As of noon on February 24, HK Asia’s stock had gone up 5.7% on the Hong Kong Stock Exchange, trading at 6.66 Hong Kong dollars, which is about 86 cents.
HK Asia’s stock could close above its June 2019 high point of 6.50 Hong Kong dollars (84 cents). It has already gone up 1,700% this year.
The company’s interest in Bitcoin is in line with a larger trend of publicly traded companies buying cryptocurrency to make more money.
In its previous statement, HK Asia’s board said that the company bought Bitcoin because “increasing popularity of cryptocurrencies in the commercial world.”
The company said that its Bitcoin purchases are still below the level required by regulators to be made public, but they chose to do so “on a voluntary basis.”
In the last 24 hours, Bitcoin’s price has stayed pretty steady. It is now down less than 1% at $95,537. Since February 5, it has been hard to get above $100,000. According to CoinGecko, it is now 12% below its all-time high of $108,786 on January 20.
