Voluntary Announcement on Cryptocurrency Holdings

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Voluntary Announcement on Cryptocurrency Holdings

In a move aimed at enhancing transparency and investor confidence, Boyaa Interactive International Limited ("the Company"), along with its subsidiaries collectively referred to as "the Group," has issued a voluntary update regarding its cryptocurrency investment activities. This disclosure provides shareholders and prospective investors with timely insight into the Group’s strategic digital asset positioning, particularly its growing exposure to Bitcoin (BTC).

👉 Discover how companies are integrating Bitcoin into their treasury strategies.

Strategic Bitcoin Acquisition Update

On February 28, 2025, the Group executed a significant purchase of approximately 100 Bitcoin units at an average cost of around $79,495 per BTC, amounting to a total investment of approximately $7.95 million. This transaction marks a continued commitment to digital asset diversification and reflects the Company's long-term confidence in Bitcoin as a store of value.

Following the completion of this acquisition, the Group’s total Bitcoin holdings now stand at approximately 3,350 BTC, with a weighted average acquisition cost of $58,627 per Bitcoin. These figures underscore a disciplined investment approach, with earlier purchases executed at lower price points contributing to a favorable overall cost basis.

The decision to increase its Bitcoin position was made under a previously granted authority approved by shareholders at a general meeting. This purchase authorization empowers the Board of Directors to allocate capital toward cryptocurrency investments within defined limits and risk parameters. Notably, this transaction does not constitute a notifiable transaction under Chapter 14 or Chapter 14A of the Hong Kong Stock Exchange Listing Rules, reinforcing its compliance with regulatory standards.

For additional context on the purchase authorization, investors are encouraged to review the Company’s circulars dated December 5, 2023, and March 28, 2024.

Commitment to Transparent Disclosure

Recognizing the evolving interest in corporate digital asset strategies, the Company reaffirms its commitment to regular and responsive disclosure of its cryptocurrency holdings. Updates will be shared periodically and made available in response to investor inquiries, ensuring that stakeholders have access to timely and accurate information.

This proactive communication strategy aligns with broader market trends where publicly traded companies increasingly view Bitcoin not just as a speculative asset but as a strategic component of corporate treasury management—similar to approaches adopted by firms in other jurisdictions.

👉 Explore how institutional adoption is shaping the future of digital assets.

Market Volatility and Investor Considerations

Investors are reminded that the cryptocurrency market is inherently volatile, with prices subject to rapid and unpredictable fluctuations. As such, the fair value of the Group’s digital assets may vary significantly over time, directly impacting the Company’s financial performance and reported asset valuations.

Given this dynamic environment, shareholders and potential investors are advised to exercise caution when trading the Company’s securities. While the long-term outlook for Bitcoin remains positive due to its scarcity, decentralized nature, and increasing institutional acceptance, short-term price movements can be influenced by macroeconomic factors, regulatory developments, and market sentiment.

Key Risks to Consider:

Despite these risks, many forward-thinking organizations continue to view Bitcoin as a hedge against inflation and currency devaluation—particularly in times of economic uncertainty.

Core Strategic Rationale Behind Crypto Investment

The Group’s decision to hold Bitcoin is grounded in several strategic considerations:

  1. Capital Preservation: Amid global monetary expansion and low-yield environments, Bitcoin’s fixed supply cap of 21 million coins positions it as a deflationary asset.
  2. Diversification Benefit: Adding non-correlated assets like Bitcoin can reduce overall portfolio risk.
  3. Long-Term Value Appreciation: Historical performance suggests strong long-term growth potential, despite periodic corrections.
  4. Technological Conviction: Confidence in blockchain infrastructure and growing real-world utility supports fundamental value.

These principles mirror those embraced by an increasing number of public and private enterprises integrating digital assets into their financial frameworks.

👉 Learn how businesses are leveraging blockchain for sustainable growth.

Frequently Asked Questions (FAQ)

Q: Why did Boyaa Interactive decide to invest in Bitcoin?
A: The investment aligns with a broader strategy to diversify treasury reserves, preserve capital amid inflationary pressures, and participate in the long-term growth potential of digital assets.

Q: Is this purchase compliant with Hong Kong listing rules?
A: Yes. The transaction was conducted under shareholder-approved authority and does not trigger disclosure obligations under Chapters 14 or 14A of the HKEX Listing Rules.

Q: Will the Company continue to buy or sell Bitcoin in the future?
A: Future decisions will depend on market conditions, liquidity needs, and strategic objectives. Any material changes will be disclosed in accordance with best practices.

Q: How does Bitcoin affect the Company’s financial statements?
A: Digital assets are recorded at fair value, with changes in value recognized in profit or loss. Therefore, volatility in BTC prices may impact reported earnings.

Q: Where are the Bitcoin holdings stored?
A: While specific custody details are not disclosed for security reasons, best practices suggest the use of cold storage and multi-signature wallets for institutional-grade protection.

Q: Can shareholders influence crypto investment decisions?
A: Major policy decisions, including initial authorization for crypto investments, were approved by shareholders. Ongoing execution is managed by the Board within pre-approved limits.

Looking Ahead: Institutional Adoption Trends

The Boyaa Interactive announcement reflects a growing trend among publicly listed companies exploring digital assets as part of their capital allocation strategy. As financial infrastructure matures—with improved custody solutions, clearer tax guidance, and expanding regulatory clarity—more organizations are likely to follow suit.

Bitcoin continues to gain recognition not only as a speculative instrument but as a legitimate component of modern corporate finance. With increasing adoption across industries and geographies, its role in treasury management appears poised for further expansion.

Conclusion

Boyaa Interactive International Limited’s voluntary disclosure reinforces its dedication to transparency, strategic foresight, and shareholder engagement. By maintaining a substantial Bitcoin position acquired at a favorable average cost, the Company positions itself within a forward-looking cohort of businesses embracing digital transformation in finance.

As the digital asset ecosystem evolves, ongoing communication, prudent risk management, and adherence to governance standards will remain critical. Investors are encouraged to stay informed and evaluate cryptocurrency-related exposures within the context of broader market dynamics and long-term strategic vision.

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