Take a look at the encryption layout of the latest 8 Hong Kong stocks: the highest investment is hundreds of millions of dollars, and the stock price has pumped 3.6 times from the beginning of the year

By Nancy, PANews

As Hong Kong’s Web3 environment becomes more and more open, in addition to long Hong Kong investment institutions buying US Bitcoin Spot ETF, more and more long Hong Kong stocks are also entering the Crypto track. This article PANews takes stock of 8 Hong Kong-listed companies that have joined the Web3 wave this year, in addition to large-scale allocation of encryption assets, these institutions have also combined their own business with Web3 technology, and invested in related encryption projects to promote business longing development and even transformation, which has a certain effect on their stock prices.

Boyaa Interactive: Plans to purchase $100 million Crypto Assets at the long, driving the latest quarterly profit rise****1130% year-on-year

Boyaa Interactive, a Hong Kong-listed company whose main business is games, began to test the encryption market in the second half of last year, aiming to fully transform into a Web3 listed company. As of May 16, Boyaa Interactive’s stock price has increased nearly 3.6 times from its highest at the beginning of the year, once hitting a record high since February 2016.

In August 2023, Boyaa Interactive announced that its board of directors had approved a budget of US$5 million to purchase Crypto Assets such as Bitcoin and Ethereum, which was funded by cash reserves generated by the Group’s operations in Hong Kong and overseas. After a lapse of several months, Boyaa Interactive once again announced that it intends to purchase up to long US$100 million Crypto Assets in the next 12 months, including Bitcoin, Ethereum and USDT, etc., and said that buying and holding Crypto Assets is an important measure for the group’s business layout and development in the Web3 field and an important part of the group’s asset allocation strategy.

According to the announcement data in March this year, Boyaa Interactive purchased a total of 1,110 Bitcoin at an average price of about $41,790, a total of 14,855 Ethereum at an average price of about $2,777, and about 8 million USDT. Based on the current (May 16) prices of these Crypto Assets, Boyaa Interactive has a total floating profit of more than $30.335 million. According to the latest announcement of Boyaa Interactive, its profit in the first quarter of this year rises by 1130% year-on-year due to crypto assets.

In addition to the purchase of Crypto Assets, Boyaa Interactive has also invested in long Web3 projects, including in April this year, Boyaa Interactive signed a subscription protocol with Pacific Waterdrip Digital Asset Fund SPC, investing US$1 million in the fund, and conducting strategic cooperation in the field of Web3 game development and Bitcoin ecosystem, the latter mainly invests in projects such as Metaverse, NTF and the Blockchain field of Web3 infrastructure; Boyaa Interactive participated in the $1.25 million seed round financing of RootData, a Web3 asset data platform; AWAKENING VENTURES, a Web3 venture capital fund, received a $500,000 investment from Boyaa Interactive, which is mainly used to invest in Programmability Bitcoin web, Web3 games, Easy Smart Earn (ESE), application infrastructure (such as Application Layer protocol), etc.

In addition, Boyaa Interactive revealed that it has established a Web3 research and operation team, which will focus on the development of Web3 games and related Web3 infrastructure research and development, including Wallet, Decentralized Finance products, etc.

Coolpad Group: **** has purchased $27.86 million in encryption assets, and plans to spin off Bitcoin Mining company to go public in the United States

Hong Kong-listed Coolpad Group is a Chinese mobile communication terminal equipment development and software development enterprise, the core business is mobile phones, but it has faced losses for longing years. According to the 2023 interim financial report disclosed by Coolpad Group, its revenue was HK$172 million, and its net profit loss reached HK$117 million, while its revenue hit a peak of HK$24.9 billion in 2014. Due to the latency of Coolpad Group in releasing its 2023 performance report, it has been in a state of suspension for longer, and the 2023 audit is expected to be completed by the end of June 2024.

Due to the poor mobile phone business, Coolpad Group began to explore new businesses. Recently, Coolpad Group announced that the group is actively seeking opportunities to enter the digital money field, which the company sees as an opportunity to expand its encryption business, and also make the group’s business more longer and provide another revenue channel. Its wholly-owned subsidiary, Digital Tech, has purchased $27.86 million in encryption assets, acquisition 1,500,000 shares of Cleanspark Bitcoin Mining the Company CLSK (approximately $15.89 per share) for a total consideration of approximately $23.84 million for the period from April 16 to May 8, 2024, and acquisition 113 for a total consideration of approximately $4.03 million for the period from April 19 to May 8, 2024. 000 IBIT shares (approximately $35.64 per share). At current prices (May 16), Coolpad Group’s floating profit exceeded $2.074 million.

It is worth mentioning that in addition to launching a new business related to the Mining of encryption assets by the end of 2023, Coolpad Group has also made large capital expenditures related to property, plant and equipment, such as spending more than $12 million to purchase electronic computing servers for encryption Mining between August and November 2023, and is also considering the possibility of spinning off its wholly-owned subsidiary, Coolbit Technologies Limited, and listing it independently on the NASDAQ in the United States. It is reported that the subsidiary has launched a Digital Money investment business since the second half of last year, focusing on Bitcoin Mining.

**Blue Harbor Interactive: **Increase Crypto Assets Purchase Limit to $6 Million

Mobile game developer Langang Interactive began to enter the Web3 business and related assets as early as last year. In September 2023, Blueport Interactive issued an announcement announcing the purchase of a total of 92.4712 Bitcoins in open market transactions on June 15, 2023, July 7, 2023, August 8, 2023 and August 17, 2023, respectively, and in the 12 months prior to the date of this announcement, Blueport Interactive also purchased 93.85 Bitcoin for approximately $2.7 million.

Since entering 2024, Langang Interactive is accelerating the layout of encryption business. In late January this year, Blueport Interactive announced that the board of directors is authorized and empowered to adjust the maximum amount of Crypto Assets purchased in open market transactions from a maximum long of US$5 million to US$6 million. At the same time, Blueport Interactive has also announced investments in long encryption projects, such as BiHelix, an infrastructure in the Bitcoin RGB field, Merlin Chain, a Bitcoin Layer2 expansion solution, and Bitcoin cross-chain bridges XLink.

As of May 16, Langang Interactive’s share price has increased nearly 2.7 times since the beginning of this year, and once hit a new high since March 2020.

Guofu Innovation: Plans to spend 5 million Hong Kong dollars to buy Crypto Assets, which has been laid out longest times before

Hong Kong-listed Guofu Innovation is also actively carrying out Web3-related business layout, and believes that Crypto Assets investment will enable the group to better adapt to changing market conditions, and will help the business transform from TradFi industry to innovative finance and Fintech.

As early as August 2023, Fuqiang Securities, a wholly-owned subsidiary of Guofu Innovation, submitted an application to the Hong Kong Securities and Futures Commission to engage in virtual asset-related activities, aiming to provide investors with a strategy of longing services to open up new revenue streams. Soon after, Guofu Innovation announced its entry into the virtual asset space again, and its wholly-owned subsidiary, Fortune Genesis Holdings Limited, proposed to acquire from the company’s chairman Liu Zhiwei a $1.6 million stake in Summer Feeder Fund Limited, which invests in SEBA Bank AG, a banking entity mainly engaged in crypto assets-related banking services.

Recently, Guofu Innovation announced that its board of directors has approved a budget of 5 million Hong Kong dollars for the group’s investment in Crypto Assets and virtual asset funds in the next year. The budget will be mainly used to purchase Crypto Assets (mainly including Bitcoin) on regulated and licensed trading platforms; and subscription to a Hong Kong Compliance Virtual Asset Fund (i.e. a virtual asset fund in which the fund manager is authorised to carry on Type 9 regulated activity under the Securities and Futures Ordinance and is approved to invest longest 10% of the total asset value of the portfolio in virtual assets or indirectly invest in virtual assets). In addition, Guofu Innovation has previously invested in virtual asset management company MaiCapital, stored value payment instrument company Yuan coin Technology, digital exchange TideBit, and digital asset bank SEBA Bank, and recently invested $1.5 million in Web3 music startup Star Nest through its wholly-owned subsidiary Chuangqi International Limited.

Since Guofu Innovation announced plans to buy Crypto Assets, as of May 16, its share price has only achieved a single-digit pump up, hitting a new high since December 2020.

Ying Universe: Plans to spend $100 million on Crypto Assets over the next 5 years

Ying Universe is an interactive social platform listed on the Hong Kong stock market, which was renamed in 2022 due to its entry into the Metaverse business, and its products include Yingke Live, Opposite, Super Like, Jimu and other long products, mainly involving live broadcast, blind date and social three major business zone. According to the 2023 annual performance financial report released by Ying Universe, its total revenue in 2023 will be 6.84 billion yuan, and its net profit will reach 400 million US dollars, an rise 337.8% year-on-year.

In March this year, Ying Universe announced that Crypto Assets investment is an important part of the group’s Web3 business development strategy and asset allocation strategy, and its board of directors has approved a budget of $100 million for the group to purchase Crypto Assets on any regulated and licensed trading platform in the next five years, and the source of funds will be its existing cash reserves. The stock price of Ying Universe did not pump significantly because of the news, but it hit a new high this year.

CMGE: Cooperate to develop Web3 games and purchase virtual assets

CMGE, a Hong Kong-listed company, is a global IP game operator, with a total operating income of 2.6 billion yuan in 2023 and a net profit of 5.379 million yuan. In addition to being a member of the Hong Kong Web3.0 Association, CMGE has recently reached a cooperation with Hashkey Group to promote the development of Web3 games and game platform business, and will open an account on HashKey Exchange to purchase virtual assets. In addition, HashKey Group will also provide institutional virtual asset custody services for CMGE.

Or affected by this news, as of May 16, CMGE’s share price has pumped by more than 23.8%, once hitting a new high so far in 2024.

Wealthking Smart Investment: Will delve into the Crypto Assets market and capture investment opportunities

Wealthking Intelligent Investment is a cross-border cross-border investment platform listed on the main board of the Hong Kong Stock Exchange. In addition to announcing the opening of the HashKey Exchange last year, Wealthking Intelligent Investment also recently announced that its wholly-owned subsidiary entered into a fund subscription document and limited partnership protocol on April 23 this year for a fund established and managed by Tide Capital called “Tide Investment One Limited Partnership”. At the same time, Wealthking Intelligent Investment said that the fund investment aims to enable the company to penetrate the digital asset and crypto asset markets, and capture investment opportunities in this field with the professional advantages of TideCapital.

Since the announcement, the share price of Wealthking Intelligent Investment has not changed significantly.

Victory Securities: Hong Kong’s first virtual asset retail brokerage, has launched a virtual asset trading business

Victory Securities is Hong Kong’s first virtual asset retail brokerage. According to the data disclosed by Chen Peiquan, executive director of Shengli Securities, at the end of 2023, the average monthly turnover of its virtual asset trading and trading services has reached US$10 million and has made a profit.

This year, Victory Securities not only launched the stock coin trading app VictoryX to allow users to trade stocks and Crypto Assets on the same platform, but also reached Depth cooperation with encryption projects such as HashKey Exchange and TokenPocket, and also became the only participating securities firm in the first batch of Bitcoin and Ethereum Spot ETF in Hong Kong to accept physical subscriptions.

From the perspective of market performance, the share price of Shengli Securities began to pump sharply at the end of November last year after a long period of slump, and hit a record high in April this year.