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While followed on February 17 in Hong Kong, HK Asia Holdings Limited—an investment company based out of Hong Kong—had its shares jump by almost 93%. The spike was triggered by the company reporting on Feb 16 that it had bought 1 Bitcoin (BTC) for around $96,150 on Feb 13, using its internal funds. The share price surged to 5.50 Hong Kong dollars ($0.71) on the Hong Kong Stock Exchange, nearing its highest point since June 2019, when it hit 6.50 HKD ($0.84).
A Corporate Revolution Among Public Companies
HK Asia Holdings said that the firm decided to invest in Bitcoin due to the growing acceptance of cryptocurrencies in the commercial sector. By making that move, the company joins a growing class of public companies that consider Bitcoin a strategic asset. Market responses to those types of investments have been mixed.
In fact, last month, Hong Kong construction company Ming Shing Holdings said its owned subsidiary — Lead Benefit — purchased 500 BTC for approximately $47 million. Despite that substantial investment, Ming Shing’s stock hardly budged and has dropped almost 40% this year.
Japan’s Metaplanet, an investment company that started buying Bitcoin in April of 2023, saw its stock soar over 3,900% in the last 12 months. Following its most recent acquisition of 269.4 BTC on Feb. 17, Metaplanet’s balance now stands at 2,031.5 BTC worth $194.7 million.
Is Bitcoin a Hedge Against Economic Uncertainty?
The board of HK Asia Holdings noted its potential for use as a hedge against economic uncertainty, referencing inflationary pressures caused by the government stimulus efforts and an increasing money supply. As fiat currencies lose purchasing power, Bitcoin is perceived as a digital asset to store the value.
This viewpoint is consistent with a wider trend in which institutions are looking for alternative stores of value, especially in light of concerns about monetary policy and the stability of the global economy, further establishing Bitcoin as a financial refuge in uncertain times.
U.S. States Consider Investing in Cryptocurrency
Several state legislators are considering the purchase of digital assets as part of their investment portfolios in the United States. The Inflation Protection Act of 2025, proposed by West Virginia State Senator Chris Rose, suggests that a percentage of the investments made by the state treasury should be diverted to digital assets and precious metals.This comes on the heels of former U.S. President Donald Trump announcing a working group on Jan. 23 to study the potential of a federal digital asset reserve and similar measures being proposed at the state level.
Utah and Kentucky Push Forward with Crypto Investment Bills
Utah is on the front lines of cryptocurrency adoption following the House of Representatives approving a bill on Feb. 6, which would enable the state treasury to invest in Bitcoin, certain altcoins, and stablecoins. The legislation is set for review in the Senate, a sign of increasing institutional interest in digital assets. Kentucky, on the same day, also introduced a bill that would allow up to 10% of state funds to be used in cryptocurrencies. These new developments underscore a wider turn to incorporate digital assets into government investment plans amid fears of inflation.
Public Funds assure health of the Digital Asset Space
At the end of 2024, a dozen U.S. states have invested in Strategy—the company, formerly known as MicroStrategy—and state pension funds and treasuries hold a total of $330 million worth of its stock.The largest stake, 285,785 shares worth about $83 million, according to a February 14 filing with the U.S. Securities and Exchange Commission (SEC), is held by the California State Teachers Retirement System fund.
The retirement fund, which also manages $69 billion in stock investments, held 306,215 shares of Coinbase (COIN) worth $76 million when the filing was made.These initiatives signal a growing willingness by public entities and corporations to include digital assets in their portfolios, a sign that confidence in the long-term potential of crypto is gaining momentum
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Frequently Asked Questions
Why did the investment firm’s stock skyrocket?
Shares in the company exploded 93% after the firm disclosed it had bought a digital asset, which traders saw as a clever hedge against economic headwinds.
How much of the digital currency did the company buy?
The firm purchased a single unit of the virtual asset for around $96,150 using internal funds, indicating it sees long-term value in the asset.
Are other companies pouring money into virtual currency?
Yes, businesses themselves, too, such as Metaplanet and Ming Shing Holdings, own some digital tokens as well, although equity price action has diverged based on the market’s response.
How do governments respond to digital asset investments?
For instance, Utah and Kentucky are enacting legislation enabling treasury funds to contain decentralized finance instruments, reflecting growing institutional acceptance.
Glossary of Key Terms
Stock Surge: A sudden rise in a company’s share price, usually driven by market news, investor sentiment, or strategic business decisions.
Digital Asset: A type of value that exists in electronic form, consisting of virtual currencies and blockchain-based assets, which facilitates trade and investment and is used to hedge against economic instability.
Public Investment Firm: A corporation that invests the shareholders’ money in securities, which may include stocks or bonds that are often traded on the stock market and that is subject to market forces and government regulation.
Market Reaction: The way investors react to financial news, causing prices to sway, stock rallies, or sell-offs based on risks or opportunities perceived.
Treasury Investment: Government or corporate funds treasury investment across various financial instruments (traditional markets, bonds, and now decentralized financial assets).
Fiat Currency Depreciation: The diminishing value of government-backed currency due to inflation, over-issue of currency, or market downturns.
Institutional Adoption: Large organizations, including corporations and government entities, put alternative financial assets on their balance sheets.
Legislative Initiative: An instrument of legislative will through which a government body regulates, restricts or facilitates investment in new generations of financial technology and digital assets.
