In a striking example of corporate crypto adoption, Bohao Interactive (00434.HK), a Hong Kong-listed game company with a total market cap of approximately $230 million, now holds Bitcoin worth $226 million—nearly its entire valuation. This bold financial strategy highlights how digital assets are reshaping traditional business models and investment portfolios.
Strategic Crypto Investments Driving Growth
As of November 12, Bohao Interactive disclosed ownership of 2,641 Bitcoin and 15,400 Ethereum, acquired at an average cost of $54,000 per BTC** and **$2,756 per ETH, respectively. With Bitcoin recently surging past $86,900 and Ethereum exceeding $3,440, the company's unrealized gains exceed $100 million, significantly boosting shareholder value.
👉 Discover how companies are turning crypto holdings into long-term value.
This isn’t speculative trading—it’s a calculated part of Bohao’s broader Web3 strategy and asset allocation framework. The company has openly stated that holding cryptocurrencies is essential to its future in decentralized technologies and digital economies.
From Gaming to Digital Assets: A Transformational Shift
Founded in 2004 as a developer of online card and board games, Bohao Interactive went public on the Hong Kong Stock Exchange on November 12, 2013. Initially focused on traditional gaming, the company began shifting toward blockchain and digital assets in 2023.
By the end of 2023, its digital asset portfolio was valued at 78.6 million RMB (~$11 million). Just six months later, that figure ballooned to **1.688 billion RMB** (~$235 million), representing 75% of total assets and over 90% of current assets—a staggering concentration for any public firm.
The portfolio primarily includes:
- Bitcoin
- Ethereum
- Tether (USDT)
During Q2 alone, Bohao purchased 885 additional Bitcoin, increasing its holdings from 1,194 to 2,079 BTC. By August 22, it had further expanded to 2,410 BTC, with an average acquisition cost of $51,900 per coin.
Profitability Fueled by Crypto Appreciation
Bohao’s financial performance reflects this transformation. In the first half of the year, the company reported a fair value gain on digital assets of 245.7 million RMB (~$34 million), accounting for 87% of net profit attributable to shareholders. This means most of its profitability came not from game sales or user growth—but from crypto price appreciation.
While this raises questions about sustainability, it also demonstrates the power of forward-thinking treasury management in the digital age.
Market Sentiment and Buying Momentum
The pace of Bohao’s Bitcoin purchases slowed in recent months, likely due to rising prices. Since July, Bitcoin has surged amid growing optimism around regulatory clarity and macroeconomic factors—including speculation that a potential return of Donald Trump to the U.S. presidency could favor crypto innovation.
On November 10, Bitcoin broke $80,000 for the first time**, reaching as high as **$89,000 before settling around $86,900. This momentum has amplified returns for early corporate adopters like Bohao.
Shareholder Returns Through Crypto Dividends
In March, Bohao announced a progressive dividend policy:
- Distribute at least 20% of annual operating profit to shareholders.
- Allocate at least 5% of gains from crypto investments annually as dividends.
This hybrid model blends traditional profitability with modern digital asset returns—a novel approach that may inspire other firms exploring treasury diversification.
Despite strong fundamentals post-crypto pivot, Bohao’s stock liquidity remains low compared to larger peers. However, trading volume has increased since 2024 due to heightened investor interest in its crypto exposure.
Other Public Companies Embracing Cryptocurrency
Bohao is not alone. Several other listed firms have made significant moves into digital assets:
Ying Universe (03700.HK)
In March, the social entertainment platform approved a $100 million budget over five years to buy cryptocurrencies on regulated exchanges—an institutional-grade commitment signaling long-term confidence.
Guofu Innovation (00290.HK)
Between March and August, the investment firm acquired 36 million HKD ($4.6 million) worth of Bitcoin, underscoring growing institutional appetite in Asia.
Bluehole Interactive (08267.HK)
The gaming company reported holding 142.85 BTC and 848.39 ETH in its 2024 interim report, with a total acquisition cost of $8.8 million.
Canaan Inc. (NASDAQ: CAN)
Known as the "first blockchain stock," Canaan—a maker of Bitcoin mining hardware—held 1,133.5 BTC as of June 30, valued at $69.9 million at the time.
These cases reveal a clear trend: public companies are increasingly treating Bitcoin and Ethereum not just as speculative tools but as strategic reserves.
Regulatory Context in China
It's important to note that mainland Chinese regulations restrict cryptocurrency activities. In December 2013, the People's Bank of China and five other ministries issued a notice stating:
- Bitcoin is not legal tender.
- Financial institutions are prohibited from handling Bitcoin transactions.
However, offshore purchases—such as those made by subsidiaries in Hong Kong or other jurisdictions—are permissible under certain conditions. For instance, Zhidu Co. (000676.SZ), an A-share company, acquired Bitcoin through its Hong Kong subsidiary via cloud computing services abroad.
Zhidu initially recorded its Bitcoin under intangible assets at cost. Though it sold some holdings in Q1 2024, it confirmed in November it still holds BTC—demonstrating cautious but persistent institutional interest even within regulatory constraints.
👉 See how global firms are navigating crypto compliance and building compliant portfolios.
Frequently Asked Questions (FAQ)
Q: Can Chinese companies legally hold Bitcoin?
A: While mainland financial institutions cannot engage in crypto business, companies may hold digital assets if acquired legally through offshore subsidiaries or foreign platforms.
Q: Why are companies buying Bitcoin instead of keeping cash?
A: Many view Bitcoin as “digital gold”—a hedge against inflation and currency devaluation. Its limited supply makes it attractive for long-term treasury reserves.
Q: Is Bohao Interactive profitable without crypto gains?
A: Traditional operations contribute to revenue, but recent net profits have been heavily influenced by unrealized gains on digital assets.
Q: What risks do companies face when holding crypto?
A: Price volatility is the biggest risk. Regulatory changes and cybersecurity threats also pose challenges, requiring robust risk management frameworks.
Q: How does crypto affect shareholder value?
A: Rapid price increases can boost equity value quickly—but downturns can lead to sharp declines in book value and investor sentiment.
Q: Will more companies follow this model?
A: Yes—especially in tech and Web3 sectors. As regulatory clarity improves and custody solutions mature, broader adoption is expected.
While still controversial in some financial circles, corporate crypto adoption is gaining legitimacy. Companies like Bohao Interactive are redefining what it means to be asset-rich in the digital era—proving that innovation isn't limited to startups or Silicon Valley giants.
👉 Explore institutional-grade crypto investment strategies used by forward-thinking companies today.