Chinese Company Plans To Allocate $100 Million For Crypto Investments

Despite China maintaining a stringent stance on Bitcoin (BTC) and cryptocurrencies in general, there has nevertheless been a notable surge in crypto adoption there as of late. Boyaa Interactive, a major gaming entity in China listed on the Hong Kong stock exchange, recently declared its intention to invest in cryptocurrencies, particularly Bitcoin and Ethereum (ETH).

Investment with a catch

In any case, the aforementioned announcement is being viewed as a positive signal, suggesting growing interest by institutional investors in engaging with digital assets and the cryptocurrency market.

As such, the targeted cryptocurrencies for purchase include BTC, ETH, Tether (USDT), and USD Coin (USDC), all within the next year. Boyaa Interactive emphasized that the selected cryptocurrencies must align with the overall business development and asset allocation strategy of the company. The evaluation and approval process will be overseen by the virtual asset management and risk control department.

Slow and steady

The statement outlines criteria for the purchased cryptocurrencies, emphasizing that they should be issued by the Board of Directors, possess strong market liquidity, boast large market capitalization, enjoy broad market recognition, and hold relatively enduring value. The primary focus within the authorized purchasing scope will therefore be on the two biggest cryptocurrencies by market capitalization, namely BTC and ETH.

Notably, the company, having initially earmarked $5 million for cryptocurrency investments in August, is now expanding its commitment to crypto adoption by allocating more funds for cryptocurrency acquisitions. With that in mind, Boyaa Interactive anticipates allocating around $90 million for acquiring both BTC and ETH, with an additional allocation of no more than $10 million for acquiring USDT and USDC.