Hong Kong Investment firm HK Asia Holdings Limited has increased its Bitcoin reserves to nearly 9 BTC after acquiring 7.89 BTC for $761,705, following a stock price surge.
Citing the increasing acceptability of cryptocurrencies in commercial markets, the investment firm with headquarters in Hong Kong declared on February 23 that its board has approved extra Bitcoin purchases. With internal funds financing the most recent buy, HK Asia’s total Bitcoin holdings—average acquisition cost of $97,021 per coin—amounts to 8.88 BTC, or nearly $861,500.
HK Asia purchased its first Bitcoin on February 16; when markets reopened the following day, its stock price surged. The company’s shares had skyrocketed over 93% by the end of trading on February 17 as investors responded fervently to its arrival into the bitcoin market.
HK Asia’s shares have increased another 5.7% as of February 24, trading at roughly 6.66 Hong Kong dollars ($0.86). Starting the trading day at approximately 7 Hong Kong dollars ($0.90), the stock had increased 11% from its closing price on February 21. Having already jumped 1,700% this year, HK Asia’s shares could surpass their June 2019 all-time high of 6.50 Hong Kong dollars ($0.84) if this momentum keeps on.
The company’s action fits a rising trend of publicly traded firms buying Bitcoin to improve financial performance. In a past comment, the board of HK Asia admitted that a major reason behind its Bitcoin purchases is the growing importance of cryptocurrencies in modern banking.
HK Asia freely provided the information despite its Bitcoin holdings falling below the legal required level of disclosure, highlighting its faith in the long-term worth of the currency.
The price of Bitcoin has stayed rather constant, trading at over $95,537—down less than 1% in the last 24 hours. Since February 5, the cryptocurrency has failed to surpass the $100,000 mark; today it is 12% below its January 20 record of $108,786.
