Nasdaq-listed Hong Kong building agency Ming Shing Group Holdings mentioned Wednesday it has entered into an settlement to amass 4,250 Bitcoin for almost $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 high Bitcoin (BTC) treasury based on 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 imagine the Bitcoin market is very liquid and the funding can seize the potential appreciation of Bitcoin and enhance the Firm’s property,” Wenjin Li, CEO of Ming Shing, mentioned.
Ming Shing’s financials present it has been beneath strain, with a unfavourable revenue margin of -3.9% in 2025 and a $5.35 million loss earlier than curiosity and taxes, based on Inventory Evaluation knowledge.
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Ming Shing is not going to pay money for the BTC. As an alternative, 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 be aware plus a warrant for 201,233,958 shares. Wealthy A lot Funding will obtain the identical package deal from Ming Shing and subject a promissory be aware to Profitable Mission for two,125 BTC.
Huge potential dilution for shareholders
The construction might sharply dilute Ming Shing’s current 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 leap to greater than 415 million, leaving present shareholders with about 3.1% possession.
In a worst-case state of affairs — if all notes, warrants and accrued curiosity have been transformed — Ming Shing’s share rely might rise to almost 939 million, lowering present holders to about 1.4% possession. The transaction additionally is dependent upon shareholder approval to authorize extra shares, because the firm at present has solely 100 million licensed.
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In keeping with 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 12 months, shedding 70.5% in worth, together with a 44% drop prior to now month and 24% over the previous 5 days.
The preliminary upward value motion reached $2.15 on Wednesday, however a lot of the features have been misplaced on the identical day. Nonetheless, at Ming Ching’s present value 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 grow to be a digital asset hub. Regulators authorized spot Bitcoin and Ether exchange-traded funds in April 2024 and issued the primary crypto asset service supplier licenses earlier this 12 months.
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 corporations.
Experiences this week additionally indicated that CMB Worldwide Securities, a subsidiary of one in every of China’s high banks, had begun providing digital asset buying and selling providers in Hong Kong.
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