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Nasdaq-listed Hong Kong operation steadfast Ming Shing Group Holdings said Wednesday it has entered into an statement to get 4,250 Bitcoin for astir $483 million, joining the question of companies adding the cryptocurrency to their treasuries.
If successful, the deal would marque Ming Shing Hong Kong’s apical Bitcoin (BTC) treasury according to BitcoinTreasuries.NET data, surpassing adjacent Buyaa Ineractive International with its 3,350 BTC arsenic Bitcoin and crypto adoption instrumentality the firm satellite by storm.
“We judge the Bitcoin marketplace is highly liquid and the concern tin seizure the imaginable appreciation of Bitcoin and summation the Company’s assets,” Wenjin Li, CEO of Ming Shing, said.
Ming Shing’s financials amusement it has been nether pressure, with a antagonistic nett borderline of -3.9% successful 2025 and a $5.35 cardinal nonaccomplishment earlier involvement and taxes, according to Stock Analysis data.
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Ming Shing volition not wage currency for the BTC. Instead, it plans to contented 10-year, 3% convertible notes (convertible astatine $1.20/share) and 12-year warrants covering a full of 402,467,916 shares (exercisable astatine $1.25/share).
Two British Virgin Islands-based firms are involved. Winning Mission Group is selling the 4,250 BTC and volition person a $241,480,750 convertible enactment positive a warrant for 201,233,958 shares. Rich Plenty Investment volition person the aforesaid bundle from Ming Shing and contented a promissory enactment to Winning Mission for 2,125 BTC.
Massive imaginable dilution for shareholders
The operation could sharply dilute Ming Shing’s existing shareholders. The institution presently has less than 13 cardinal shares outstanding. If the convertible notes are exercised but warrants stay unexercised, the stock number would leap to much than 415 million, leaving existent shareholders with astir 3.1% ownership.
In a worst-case script — if each notes, warrants and accrued involvement were converted — Ming Shing’s stock number could emergence to astir 939 million, reducing existent holders to astir 1.4% ownership. The transaction besides depends connected shareholder support to authorize much shares, since the institution presently has lone 100 cardinal authorized.
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According to Google Finance data, Ming Shing banal spiked sharply connected the news, contempt trading bearishly implicit the longer term. The company’s banal has faced steep declines implicit the past year, losing 70.5% successful value, including a 44% driblet successful the past period and 24% implicit the past 5 days.
The archetypal upward terms question reached $2.15 connected Wednesday, but astir of the gains were mislaid connected the aforesaid day. Still, astatine Ming Ching’s existent terms of $1.65, the banal is astir 11.5% up connected Thursday.
Ming Shing Group Holdings Ltd 24-hour terms chart. Source: Google FinanceHong Kong pushes deeper into crypto
The announcement comes arsenic Hong Kong continues its propulsion to go a integer plus hub. Regulators approved spot Bitcoin and Ether exchange-traded funds successful April 2024 and issued the archetypal crypto plus work supplier licenses earlier this year.
In February, the Securities and Futures Commission (SFC) introduced the “ASPIRe” roadmap to usher section regulation. Earlier this month, the SFC finalized a stablecoin ordinance criminalizing unlicensed issuers and issued caller custody guidance for crypto companies.
Reports this week besides indicated that CMB International Securities, a subsidiary of 1 of China’s apical banks, had begun offering virtual plus trading services successful Hong Kong.
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