Hassan Maishera
TL;DR
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Hong Kong-based Ming Shing is set to purchase 4,250 BTC at an average price of $113,638 from Winning Mission Group.
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An increasing number of publicly listed companies are adding cryptocurrencies to their balance sheets.
Ming Shing to Purchase 4,250 BTC for $483 million
Ming Shing Group Holdings Limited, a Nasdaq-listed construction service provider specializing in wet trades, has announced its agreement to purchase 4,250 BTC for $482.9 million with Winning Mission Group, a company registered in the British Virgin Islands.
The transaction will see 4,250 BTC exchange hands at an average price of $113,638 per bitcoin. The deal is expected to close by the end of the year, but will not be paid for in cash. Instead, Ming Shing will issue convertible promissory notes and stock warrants to the seller.
In its announcement, Ming Shing stated that,
“Upon the Closing, the Company shall issue a Note to the name of the Seller and the Assignee or their respective designee/assignee in the principal amount of US$241,480,750 and US$241,480,750, respectively, in a transaction excluded from registration under the Securities Act of 1933, as amended.”
The press release added that the deal extends to a third party, Rich Plenty Investment Limited, which will receive half the value of the deal. Ming Shing pointed out that the original seller and the new assignee will each get a convertible note worth over $241 million and a warrant to purchase more than 200 million of Ming Shing's shares.
While commenting on this deal, Wenjin Li, CEO of Ming Shing, stated that,
“We believe the Bitcoin market is highly liquid and the investment can capture the potential appreciation of Bitcoin and increase the Company’s assets. We are devoted to creating additional value for our shareholders and actively exploring options for the Company to grow further.”
This latest development comes as an increasing number of corporate entities are adding cryptocurrencies to their balance sheets. Data obtained from The Block shows that public bitcoin treasury companies hold 3.93% of bitcoin's entire supply, with Michael Saylor’s Strategy leading the pack.
