Nasdaq-listed Hong Kong development agency Ming Shing Group Holdings mentioned Wednesday it has entered into an settlement to amass 4,250 Bitcoin for practically $483 million, becoming a member of the wave of firms including the cryptocurrency to their treasuries.
If profitable, the deal would make Ming Shing Hong Kong’s high Bitcoin (BTC) treasury in response to BitcoinTreasuries.NET information, surpassing even Buyaa Ineractive Worldwide with its 3,350 BTC as Bitcoin and crypto adoption take the company world by storm.
“We consider the Bitcoin market is very liquid and the funding can seize the potential appreciation of Bitcoin and enhance the Firm’s belongings,” Wenjin Li, CEO of Ming Shing, mentioned.
Ming Shing’s financials present it has been below strain, with a destructive revenue margin of -3.9% in 2025 and a $5.35 million loss earlier than curiosity and taxes, in response to Inventory Evaluation information.
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Ming Shing won’t pay money for the BTC. As a substitute, it plans to challenge 10-year, 3% convertible notes (convertible at $1.20/share) and 12-year warrants protecting a complete of 402,467,916 shares (exercisable at $1.25/share).
Two British Virgin Islands-based corporations are concerned. Successful Mission Group is promoting the 4,250 BTC and can obtain a $241,480,750 convertible notice plus a warrant for 201,233,958 shares. Wealthy Lots Funding will obtain the identical package deal from Ming Shing and challenge a promissory notice to Successful Mission for two,125 BTC.
Large potential dilution for shareholders
The construction may sharply dilute Ming Shing’s present shareholders. The corporate at present has fewer than 13 million shares excellent. If the convertible notes are exercised however warrants stay unexercised, the share rely would soar to greater than 415 million, leaving present shareholders with about 3.1% possession.
In a worst-case situation — if all notes, warrants and accrued curiosity have been transformed — Ming Shing’s share rely may rise to just about 939 million, decreasing present holders to about 1.4% possession. The transaction additionally is dependent upon shareholder approval to authorize extra shares, for the reason that firm at present has solely 100 million licensed.
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In response to Google Finance information, Ming Shing inventory spiked sharply on the information, regardless of buying and selling bearishly over the long term. The corporate’s inventory has confronted steep declines over the previous yr, shedding 70.5% in worth, together with a 44% drop up to now month and 24% over the previous 5 days.
The preliminary upward worth motion reached $2.15 on Wednesday, however many of the beneficial properties have been misplaced on the identical day. Nonetheless, at Ming Ching’s present worth of $1.65, the inventory is sort of 11.5% up on Thursday.
Hong Kong pushes deeper into crypto
The announcement comes as Hong Kong continues its push to change into a digital asset hub. Regulators accepted spot Bitcoin and Ether exchange-traded funds in April 2024 and issued the primary crypto asset service supplier licenses earlier this yr.
In February, the Securities and Futures Fee (SFC) launched the “ASPIRe” roadmap to information native regulation. Earlier this month, the SFC finalized a stablecoin ordinance criminalizing unlicensed issuers and issued new custody steering for crypto firms.
Experiences this week additionally indicated that CMB Worldwide Securities, a subsidiary of certainly one of China’s high banks, had begun providing digital asset buying and selling companies in Hong Kong.
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