The Hong Kong-based construction company Ming Shiu Group Holdings, listed on NASDAQ, announced on Wednesday that it has agreed to acquire 4,250 bitcoins for nearly $483 million, joining the wave of companies adding cryptocurrency to their treasury.
If the transaction is completed, according to data from BitcoinTreasuries.NET, Ming Shiu will become the largest bitcoin (BTC) treasury in the Hong Kong region, surpassing Buyaa Interactive International, which holds 3,350 BTC.
Ming Shiu's CEO, Li Wenjin, stated, "We believe the bitcoin market has high liquidity, and this investment can capture the potential appreciation of bitcoin and increase the company's assets."
Ming Shiu's financial situation shows the company is under pressure, with a projected profit margin of -3.9% in 2025 and an EBITDA loss of $5.35 million, according to Stock Analysis data.
Ming Shiu will not purchase BTC with cash. Instead, the company plans to issue 10-year 3% convertible bonds (convertible at $1.20 per share) and 12-year warrants, covering a total of 402,467,916 shares (exercisable at $1.25 per share).
Two British Virgin Islands companies are involved. Winning Mission Group will sell 4,250 BTC and will receive $241,480,750 in convertible bonds plus 201,233,958 shares in warrants. Rich Plenty Investment will receive the same package from Ming Shiu and will issue a promissory note for 2,125 BTC to Winning Mission.
This structure could severely dilute the equity of Ming Shiu's existing shareholders. The company currently has fewer than 13 million shares outstanding. If the convertible bonds are exercised but the warrants are not, the number of shares will jump to over 415 million, leaving existing shareholders with only about 3.1% ownership.
In the worst-case scenario—if all bonds, warrants, and accrued interest are converted—the number of Ming Shiu shares could rise to nearly 939 million, reducing existing holders' ownership to about 1.4%. The transaction also depends on shareholder approval to authorize more shares, as the company is currently only authorized for 100 million shares.
According to Google Finance data, despite a long-term bearish trend in trading, Ming Shiu's stock surged significantly after the news broke. Over the past year, the company's stock has faced a sharp decline, losing 70.5% of its value, including a 44% drop in the past month and a 24% drop in the past five days.
The initial surge on Wednesday reached $2.15, but most of the gains were lost throughout the day. However, at Ming Shiu's current price of $1.65, the stock rose nearly 11.5% on Thursday.
This announcement comes as the Hong Kong region continues to push to become a digital asset hub. Regulators approved spot bitcoin and ethereum exchange-traded funds in April 2024 and issued the first licenses for crypto asset service providers earlier this year.
In February, the Securities and Futures Commission (SFC) launched the "ASPIRe" roadmap to guide local regulation. Earlier this month, the SFC finalized stablecoin regulations, criminalizing unlicensed issuers, and released new custody guidelines for cryptocurrency companies.
Reports this week also indicated that CMB International Securities has begun offering virtual asset trading services in the Hong Kong region.
Related: As adoption expands, wealthy Asian investors allocate 5% of their portfolios to cryptocurrency
Original article: “Hong Kong Construction Firm's Stock Soars Due to $483 Million Bitcoin (BTC) Treasury Bet”
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