Boyaa Interactive to Purchase $100M in BTC, ETH: Details
- Boyaa Interactive, China’s largest board and card game company, has decided to buy $100M worth of crypto.
- The firm is set to buy $45 million each of Bitcoin (BTC) and Ether (ETH) in the coming days.
- Boyaa will also buy around $10 million worth of stablecoins, specifically Tether (USDT) and USD Coin (USDC).
- The firm reported a whopping 119% year-on-year increase in net profits in the first quarter of 2023.
Boyaa Interactive, a Hong Kong-listed company and China’s largest board and card game company, has announced that it will be investing close to $100 million in digital assets. The statement from the firm sets a precedent for other entertainment-focused firms around the globe. Interestingly, this marks a strategy shift for the firm, which is known for its online card games.
The entertainment firm recently made the announcement to invest $100 in cryptocurrencies, allocating $90 million to Bitcoin (BTC) and Ether (ETH) followed by the remaining $10 million to stablecoins. Moreover, the firm is set to invest $45 million each in BTC and ETH; the remaining will be invested in Tether (USDT) and USD Coin (USDC), the top two stablecoins by market capitalization that are pegged to the US dollar.
It is clear that this strategy will allow Boyaa to diversify its portfolio, and investment in stablecoin will mitigate the risk associated with Bitcoin and Ether. Further, the firm seems to also be in a position to take advantage of the booming Web3 sector, as per reports. Its choice of stablecoin suggests that the firm might be taking into account the stability factor as well, adding a layer of stability to investments and gaining exposure to the US dollar.
Additionally, the financial health of Boyaa Interactive has also been in good condition over the past few months The entertainment firm reported a whopping 119% year-on-year increase in net profits in the first quarter of 2023. This growth provides the firm’s entry into the digital asset space with a solid foundation.
There has been a growing list of corporate entities investing in the digital asset space and purchasing cryptocurrencies directly. The list includes major companies based in the United States and listed on Nasdaq, including Tesla and MicroStrategy.
Tesla, led by billionaire Elon Musk, had purchased a significant amount of Bitcoin, while MicroStrategy remains the largest corporate holder of BTC. MicroStrategy purchased an additional 155 BTC in October and now holds 158,400 BTC, while Tesla has refrained from investing in crypto after 2021.
As mentioned above, Boyaa is a Hong Kong-listed firm. The special administrative region of China has been quite progressive when it comes to digital assets. The regulators recently created a task force to promote Web3 and invite blockchain-focused firms to set up operations in the region.