Ming Shing Group Holdings of Hong Kong, listed on Nasdaq, said it entered an agreement Wednesday to buy 4,250 Bitcoins for almost $483 Million. It is joining the growing number of firms adding cryptocurrency to their bank accounts.
When the project is successful, deal Ming Shing Hong Kong top Bitcoin (BTC) treasury according to BitcoinTreasuries.NET dataBitcoin adoption is sweeping the business world, and Buyaa Ineractive International has been surpassed with 3,350 BTC.
“We believe the Bitcoin market is highly liquid and the investment can capture the potential appreciation of Bitcoin and increase the Company’s assets,” Wenjin Li said.
Ming Shing has suffered a loss of $5.35million before taxes and interest. according Stock Analysis:
Related: The Bitcoin treasury model is breaking, but Strategy’s isn’t. Here’s why
Ming Shing won’t pay in cash for BTC. The company plans to instead issue 10 year, 3% convertible notes (convertible for $1.20/share), and 12 year warrants that cover a total number of 402,467.916 shares.
The two British Virgin Islands companies are both involved. Winning Mission Group sells the 4,250 BTC, and receives a convertible note of $241,480.750 plus a warrant to purchase 201,233.958 shares. Rich Plenty Investment receives the same package as Ming Shing, and issues a promissory notes to Winning Mission in exchange for 2,125 BTC.
Shareholders could face a massive dilution
Structure could dilute Ming Shing shareholders. The company has less than 13,000,000 shares. outstanding. If warrants are not exercised and the convertible notes remain unexecuted then the total number of shares will increase from 415 to nearly 450 million. Current shareholders would still hold about 3,1%.
In a worst-case scenario — if all notes, warrants and accrued interest were converted — Ming Shing’s share count could rise to nearly 939 million, reducing current holders to about 1.4% ownership. This transaction is dependent on the approval of shareholders to issue more shares. The company has only 100 millions currently. authorized.
Related: 10 public companies that quietly turned their balance sheets into Bitcoin treasuries
According According to Google Finance, Ming Shing’s stock spiked on news of the scandal, even though it has been trading in the long-term bearish direction. Stocks of the company have suffered steep losses over the last year. They lost 70.5%, with a drop of 44% in the previous month, and a 24% decline in the five days prior to the announcement.
On Wednesday, the initial price increase reached $2.15. However, the majority of those gains were lost the next day. Ming Ching, currently trading at $1.65 is still up nearly 11.5% on Thursday.
Hong Kong pushes deeper into crypto
Hong Kong is continuing its efforts to be a hub for digital assets. Regulators approved spot Bitcoin and Ether exchange-traded funds In April 2024, issued the first crypto asset service provider licenses Early this year,
Securities and Futures Commission. introduced the “ASPIRe” roadmap To guide local regulation. SFC published a report earlier this month. finalized a stablecoin ordinance Criminalizing non-licensed issuers issued new custody guidance For crypto companies.
The reports this week indicated also that CMB International Securities – a subsidiary from one of China’s leading banks – had started offering virtual asset trading services in Hong Kong.
Magazine: Bitcoin OG Willy Woo has sold most of his Bitcoin: Here’s why
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
