Boyaa Interactive International, a Hong Kong-based online gaming company, replaced Ether from its treasury with Bitcoin. Between Nov. 19 and 28, the firm exchanged 14,200 Ether (ETH), worth approximately $49 million, for 515 Bitcoin (BTC). Now the company’s Bitcoin holdings increased to 3,183 BTC, valued at about $310.7 million at current market price.
Boyaa Interactive approved the open market conversion of Ether to Bitcoin. Source: Boyaa Interactive International
Boyaa Interactive said that Bitcoin’s prospects make it a more suitable treasury asset. The company’s Ethereum holdings previously stood at 15,388 ETH. Despite Ether’s recent 18.3% price increase over 14 days, Boyaa opted for Bitcoin, which rose 3.8% during the same period.
Bitcoin is up 3.8% in the last 14 days. Source: CoinGecko
“Based on the considerations of the future prospects of BTC and ETH and the Company’s strategic plan, the Board is of the view that it is the relatively appropriate time for the Group to convert the ETH held by the Group to BTC to expand the BTC reserves.”
Boyaa initiated its cryptocurrency treasury plan in November 2023, allocating $45 million each to Bitcoin and Ethereum and $10 million to stablecoins such as Tether (USDT).
Other Firms Increasing Bitcoin Holdings With MicroStrategy Being the Leader
MicroStrategy, a business intelligence firm, remains the largest corporate Bitcoin holder. In November, the company purchased 55,000 additional Bitcoin for $5.4 billion, raising its total holdings to 386,700 BTC. This acquisition was funded through equity sales and debt offerings. The firm’s average Bitcoin purchase price stands at $56,761.
Several other companies have recently increased their Bitcoin reserves. Semler Scientific, a healthcare solutions provider, acquired 297 BTC in November, bringing its total holdings to 1,570 BTC. Rumble, a video-sharing platform, announced plans to allocate up to $20 million of its cash reserves to Bitcoin, following a public poll in which 93.9% of respondents supported the move.
Additionally, on Nov.26, Jiva Technologies, a Canadian wellness and plant-based e-commerce company, also announced to invest up to $1 million in Bitcoin Artificial intelligence firm Genius Group and Bitcoin mining company MARA Holdings have similarly increased their Bitcoin reserves.
What If Firms keep Dumping Ethereum For BTC?
With firma like Boyaa Interactive, MicroStrategy, and others increase their Bitcoin holdings, demand for BTC rises. This can lead to upward price pressure, especially given Bitcoin’s fixed supply of 21 million coins. If the trend of dumping Ethereum for Bitcoin accelerates, it could lead to selling pressure on ETH, potentially causing a temporary decline in its price. However, Ethereum’s price remains heavily influenced by demand for decentralized finance (DeFi) and non-fungible tokens (NFTs).
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