Nasdaq-listed Hong Kong building agency Ming Shing Group Holdings mentioned Wednesday it has entered into an settlement to accumulate 4,250 Bitcoin for practically $483 million, becoming a member of the wave of corporations including the cryptocurrency to their treasuries.
If profitable, the deal would make Ming Shing Hong Kong’s prime Bitcoin (BTC) treasury in line with BitcoinTreasuries.NET knowledge, 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 improve the Firm’s belongings,” Wenjin Li, CEO of Ming Shing, mentioned.
Ming Shing’s financials present it has been beneath stress, with a detrimental revenue margin of -3.9% in 2025 and a $5.35 million loss earlier than curiosity and taxes, in line with Inventory Evaluation knowledge.
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Ming Shing won’t pay money for the BTC. As a substitute, it plans to subject 10-year, 3% convertible notes (convertible at $1.20/share) and 12-year warrants masking a complete of 402,467,916 shares (exercisable at $1.25/share).
Two British Virgin Islands-based corporations are concerned. Profitable 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 Loads Funding will obtain the identical package deal from Ming Shing and subject a promissory notice to Profitable Mission for two,125 BTC.
Large potential dilution for shareholders
The construction might sharply dilute Ming Shing’s present shareholders. The corporate presently has fewer than 13 million shares excellent. If the convertible notes are exercised however warrants stay unexercised, the share depend would leap 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 depend might 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 presently has solely 100 million approved.
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In response to Google Finance knowledge, Ming Shing inventory spiked sharply on the information, regardless of buying and selling bearishly over the long run. 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 a lot of the beneficial properties have been misplaced on the identical day. Nonetheless, at Ming Ching’s present worth of $1.65, the inventory is almost 11.5% up on Thursday.
Hong Kong pushes deeper into crypto
The announcement comes as Hong Kong continues its push to develop into a digital asset hub. Regulators permitted 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 steerage for crypto corporations.
Experiences this week additionally indicated that CMB Worldwide Securities, a subsidiary of certainly one of China’s prime banks, had begun providing digital asset buying and selling companies in Hong Kong.
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