HK Asia Holdings Limited has increased its Bitcoin holdings to nearly 9 BTC, just a week after the investment firm saw its share prices double following the purchase of its first Bitcoin.
HK Asia, a Hong Kong-based investment firm, stated in a February 23 announcement that its board “has approved the Company to further increase its investment in Bitcoin” and disclosed that on February 20, it purchased approximately 7.88 Bitcoin (BTC) for a total cost of around $761,705.
It added that its latest Bitcoin acquisition was financed through internal resources and brought its total Bitcoin holdings to approximately 8.88 BTC, which it acquired at an average cost of $97,021 per coin—around $861,500 in total.
On February 16, HK Asia revealed that it had purchased 1 BTC, which prompted investors to flock to its stock the following day when markets reopened, resulting in a nearly 93% increase in its share price by the close of trading on February 17.
Shares in HK Asia were up by approximately 5.7% on February 24 as of the lunch break on the Hong Kong Stock Exchange, trading at around 6.66 Hong Kong dollars (86 cents), according to Google Finance.
If its current price holds, HK Asia’s stock could be set to close above its June 2019 all-time high of 6.50 Hong Kong dollars (84 cents), with its share price already up 1,700% so far this year.
HK Asia’s Bitcoin foray follows a recent trend of publicly traded firms acquiring the cryptocurrency with the aim of boosting company earnings.
In its announcement earlier this month, HK Asia mentioned that its board had recognized the “increasing popularity of cryptocurrencies in the commercial world” as part of the rationale for its initial BTC purchase.
The company noted in its latest report that its Bitcoin acquisitions are below the threshold that would legally require it to disclose its cryptocurrency purchases, but it made the announcement “on a voluntary basis.”
Bitcoin has traded flat over the past 24 hours and is currently down less than 1% to $95,537. It has remained below the psychologically significant $100,000 level since February 5 and is down 12% from its January 20 peak of $108,786, according to CoinGecko.