One of China's largest video game developers, Boyaa Interactive, is set to acquire a total $100m worth of Bitcoin (BTC), Ether (ETH) and stablecoins over the next twelve months. With the crypto investment, the company aims to strengthen their presence in the Web3 space.
The Hong Kong-based company announced the decision in an application with the local stock exchange. Already in August, Boyaa's board had approved an investment in the cryptocurrencies Bitcoin (BTC) and Ether (ETH). Now, the board seeks shareholder support to implement the $100 million acquisition.
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Strategic crypto positioning for Boyaa Interactive
The application justifies the crypto investment with an expansion plan in the emerging Web3 sector and the allocation strategy of the Boyaa Group. $45 million will be invested in Bitcoin and Ether respectively, while the remaining $10 million will be converted into the US Dollar stablecoins USDT and USDC. Boyaa believes that cryptocurrencies secure their value through their robust public open-source architecture which provides long-term protection against inflation.
Later in the application, Boyaa reveals its intention to develop blockchain-based apps in the future. The company has launched games in over 100 countries, positioning itself advantageously for the development of Web3 games. Integrating the blockchain technology into existing games is particularly interesting.
"Deeply rooted in the online gaming industry for years, we have acquired solid and leading technologies related to online gaming and network security maintenance, which provides strong support for our business expansion in the field of Web3. The Group intends to create industry-leading Web3 games through a combination of existing online games and Web3 technology and make more profound business layout in the field of Web3." - Boyaa Interactive Application
Crypto regulation in Hong Kong as a basis
Since the end of 2022, Hong Kong has solidified its status as a crypto hub. It's standing resilient against the perceived restrictions in China. Various guidelines and licenses for trading platforms have been distributed by authorities, marking a transformative shift that played a pivotal role for the game developer. The encouraging crypto landscape, backed by a supportive government, has instilled confidence in the Boyaa Group regarding the growth potential within the Web3 sector.
Boyaa's crypto investments will be made through licensed trading platforms, with HashKey notably mentioned as the first licensed crypto exchange in the city-state. The group is also exploring other Hong Kong trading platforms, provided they are regulated and licensed by the relevant authorities.