The Hong Kong construction company Ming Sheng Group, listed on NASDAQ, announced on Wednesday that it will acquire 4,250 bitcoins for $483 million through a stock issuance, joining the wave of companies increasing their cryptocurrency holdings.
If the transaction is successfully completed, Ming Sheng will become the company in Hong Kong with the most bitcoins, surpassing Buyaa Interactive International, which currently holds 3,350 bitcoins.
Ming Sheng CEO Li Wenjin stated: 'We believe the bitcoin market has strong liquidity, and the investment will help increase the company's asset value.'
The company's financial report shows that in 2025, Ming Sheng Group's profit margin was -3.9%, with a loss of $5.35 million.
In lieu of cash payment, Ming Sheng plans to issue 10-year 3% convertible bonds and 12-year warrants, covering a total of 402,467,916 shares.
Two British Virgin Islands companies are also involved in the transaction, with Winning Mission Group set to receive $241 million worth of convertible bonds and warrants, while Rich Plenty Investment will receive a similar transaction arrangement and will issue a promissory note to Winning Mission.
Potential massive dilution for shareholders
The structure may significantly dilute the current shareholders of Ming Sheng, as the company currently has less than 13 million shares outstanding. If the convertible bonds are exercised, the number of shares will increase to 415 million, leaving existing shareholders with only 3.1% equity.
The company also needs shareholder approval to issue more shares, as currently, only 100 million shares are authorized.
Ming Sheng Group's stock price surged due to the trading news, despite the overall market's weak performance. The stock price rose to $2.15 on Wednesday, but most of the gains were narrowed down, closing at $1.65 on Thursday, up 11.5%.
Hong Kong intensifies efforts to promote cryptocurrency
This move comes as Hong Kong strives to become a digital asset hub. In April 2024, Hong Kong approved spot ETFs for bitcoin and ethereum, and previously issued the first licenses for cryptocurrency service providers.
Reports this week indicate that a subsidiary of one of China's top banks, China Merchants International Securities, has begun offering virtual asset trading services in Hong Kong.
