Hong Kong – In a bold move that underscores the increasing interest of tech companies in digital currencies, Linekong Interactive, a prominent game developer, has disclosed its intention to invest a substantial sum into cryptocurrency.
Regulatory Filing and Investment Strategy
According to a recent regulatory filing with the Stock Exchange of Hong Kong dated January 21, Linekong Interactive is seeking to revise its investment strategy. The new plan proposes an increase in their cryptocurrency investment cap from the previously approved $5 million to a new target of $6 million, focusing primarily on Bitcoin (BTC) and Ethereum (ETH).
Market Volatility and Opportunity
Linekong Interactive cites the rapid rise in crypto prices as a key factor for this strategic shift. “The company believes these revisions would provide flexibility to the board in capturing fleeting opportunities in the highly volatile cryptocurrency market,” stated the game developer in its filing.
Compliance and Shareholder Engagement
The proposal is pending approval from Linekong Interactive’s shareholders. Once greenlit, the company will adhere to stringent compliance measures, including enhanced reporting, announcements, circulars, and gaining independent shareholders’ approval. Shareholders can expect to receive a detailed circular on the proposal by February 2, 2024.
Following the Trend
Linekong Interactive is not alone in its crypto endeavors. The move is part of a broader trend among Hong Kong-based public companies diversifying into the crypto space. For instance, in November 2023, Boyaa Interactive, another online game developer, revealed plans to invest up to $100 million in cryptocurrencies, allocating a major portion to Bitcoin and Ethereum, and a smaller fraction to stablecoins like Tether (USDT) and USD Coin (USDC).
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