Once known for its Texas Hold’em games, the company is repositioning itself as a Hong Kong-listed bitcoin play through its push into Web3 gaming
image credit: Bamboo Works
Key Takeaways:
- Boyaa Interactive said its first-quarter loss more than doubled year-on-year, mainly due to a decline in bitcoin prices
- Excluding changes in the value of its bitcoin holdings, the company said its core profit for the quarter rose between 85% and 90%
Boyaa Interactive International Ltd. (0434.HK) has transformed over the last two years, increasingly seen as a “bitcoin concept stock” as it drifts from its original core gaming business. As its bitcoin holdings grow, the gaming veteran’s earnings have become closely tied to price swings for the notoriously volatile cryptocurrency. But the company may be pursuing ambitions beyond simply stockpiling bitcoin.
Boyaa rose to prominence through its Texas Hold’em games before being hit by a regulatory crackdown on card and board games in China. Over the last two years, the company has attracted growing investor attention for its move into bitcoin. A sharp rise for the cryptocurrency in 2024 brought Boyaa HK$948 million ($121 million) in gains that year, turbocharging its annual profit to HK$969 million. Investors even viewed Boyaa as a Hong Kong edition of bitcoin treasury company Strategy Inc. (MSTR.US) at one point, sending the Chinese company’s shares surging in tandem with Web3 and other bitcoin plays.
But as bitcoin prices retreated, Boyaa recorded HK$411 million in losses from changes in the value of its holdings last year, sending it into the red with a net loss of HK$239 million. The bleeding is continuing this year, with the company warning last week that its loss ballooned by 110% to 120% year-on-year in the first quarter, as weak bitcoin prices continued to wreak havoc on its balance sheet. That said, excluding the digital asset value changes, the company’s profit for the quarter actually rose by 85% to 90% year-on-year.
Boyaa held 4,092 …