The Hong Kong construction subcontractor Ming Cheng Group Holdings (stock code: MSW), listed in the US, announced on Wednesday that it has signed a bitcoin purchase agreement to invest 483 million USD in 4,250 bitcoins.
This transaction was sold by the British Virgin Islands (BVI) registered company Winning Mission Group, at an average transaction price of 113,638 USD per bitcoin.
Unlike traditional cash settlements, Ming Cheng Group will pay with convertible notes and stock warrants, with the transaction expected to be completed by the end of this year.
The announcement also revealed that the transaction involves another third-party company, Rich Plenty Investment Limited, which will receive half of the total value. Ultimately, the original seller and the new assignee will each receive convertible notes worth over 241 million USD, as well as more than 200 million stock warrants.
Ming Cheng Group CEO Li Wenjin stated: "We believe the bitcoin market has extremely high liquidity. This investment not only captures the appreciation potential of bitcoin but also increases the company's assets. We are committed to creating more value for shareholders and actively exploring further growth opportunities."
Driven by the news, Ming Cheng Group's stock price soared 29% at one point on Wednesday, closing up 11.5% at 1.65 USD.
Ming Cheng Group has invested 47.375 million USD this January, purchasing 500 bitcoins at an average price of 94,375 USD each.
"Spending 483 million USD to buy bitcoins! The stock price of the Hong Kong company 'Ming Cheng Group' listed on the US stock market surged 29%" This article was first published on (Block Guest).
