Ming Shing Group Holdings Limited announced the purchase of 4,250 BTC at a price of $113,638 per bitcoin, paid with convertible bonds instead of cash.
Ming Shing Group Holdings Limited, a construction service company specialized in wet work listed on Nasdaq, announced a Bitcoin purchase agreement worth $482.9 million on Wednesday. This move marks a significant turning point in the investment strategy of the Hong Kong-based company.
The transaction with Winning Mission Group, a company registered in the British Virgin Islands, will transfer 4,250 BTC at an average price of $113,638 per bitcoin. Notably, Ming Shing will not pay in cash but will instead issue convertible promissory notes and stock warrants to the seller.
The transaction structure is further complicated by involving a third party, Rich Plenty Investment Limited, which will receive half of the transaction's value. According to the press release, both the original seller and the newly designated party will each receive a convertible bond worth over $241 million along with stock warrants for more than 200 million shares of Ming Shing.
Treasury strategy and market reaction
CEO Wenjin Li explained this decision: “We believe that the Bitcoin market has high liquidity and this investment can capture the upside potential of Bitcoin while increasing the Company’s assets.” He emphasized the commitment to creating additional value for shareholders and seeking growth opportunities for the company.
The market reacted positively immediately to this announcement. Ming Shing's MSW stock surged 29% right after the news was released, before adjusting and closing the session with an increase of 11.5% at $1.65. This strong volatility reflects investors' interest in companies adopting a Bitcoin treasury strategy.
The deal is expected to be completed by the end of this year, bringing Ming Shing into the ever-growing list of listed companies that have incorporated Bitcoin into their treasury strategies. This trend is led by MicroStrategy's Michael Saylor, with companies holding Bitcoin in public reserves currently accounting for 3.93% of the total Bitcoin supply according to data from The Block's dashboard.
