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<p>Boyaa Interactive International Limited, a Hong Kong-based investment holding company with a track record in developing online chess, card, and puzzle games, has made a strategic move with a proposed investment in digital assets.</p><p>The company’s board of directors has recently given the green light for the allocation of a substantial budget amounting to $5 million for the purpose of acquiring cryptocurrencies.</p><h2 id="header-0">Web3 positioning</h2><p>The Chinese company, incorporated in the Cayman Islands,<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0810/2023081001308.pdf" rel="noopener noreferrer nofollow"> announced</a> the move as Boyaa Interactive seeks to position itself for a dynamic shift into the realm of Web3.</p><p>While the exact allocation breakdown was not detailed in the disclosure, the company outlined that its primary focus would be on procuring established cryptocurrencies, specifically Bitcoin (BTC) and Ether (ETH). Boyaa Interactive intends to execute these purchases through regulated and licensed trading platforms within the upcoming year.</p><p>In a letter addressed to its shareholders and potential investors, the company emphasized the strategic nature of this decision:</p><p>“The purchases of cryptocurrencies are for the consideration of the Group’s future business layout into the field of Web3. The Board is of the view that the purchases of cryptocurrencies (including mainly Bitcoin (BTC) and Ether (ETH)) by the Group are in the interests of the Company and its shareholders as a whole.”</p><h2 id="header-1">A challenging recent history</h2><p>The move towards cryptocurrencies is a significant pivot for Boyaa Interactive, a company that has navigated a series of challenges in recent years. In 2018, the company’s Chairman and CEO, Zhang Wei, faced legal troubles and was<a href="https://www.asgam.com/index.php/2018/09/23/boyaa-interactive-boss-jailed-as-difficult-year-escalates/" rel="noopener noreferrer nofollow"> sentenced</a> to 12 months in prison for bribery, which led to his resignation from all executive and management positions.</p><p>Subsequent restructuring saw Dai Zhikang stepping in as the new Chairman of the board, while Tao Ying assumed the role of an Executive Director and Chairman of the Nomination Committee.</p><p>Financially, Boyaa Interactive experienced a tough period marked by revenue contraction. The company reported revenue declines over the course of 2018, largely attributed to a governmental crackdown on online poker applications and the discontinuation of poker as a recognized competitive sport. Regulatory risks stemming from the Chinese government’s stance on Texas Hold’em poker games resulted in a substantial falloff in revenue by comparison with past performance.</p><h2 id="header-2">Funds seizure</h2><p>These challenges cascaded into the following year, when the company encountered a substantial freeze on its funds. In 2019, a Chinese court<a href="https://www.asgam.com/index.php/2019/09/02/chinese-court-seizes-bank-accounts-of-online-card-game-developer-boyaa/" rel="noopener noreferrer nofollow"> ordered</a> the freezing of RMB 635 million (approximately $88.6 million) belonging to Boyaa Interactive, following the legal actions against Zhang Wei and his associated entities.</p><p>One of the company’s subsidiaries, Boyaa Shenzhen, was found guilty of offering bribes. The company responded by clarifying that the frozen funds could potentially be confiscated if linked to Zhang’s misconduct. However, Boyaa Interactive also stressed that it had not been directly implicated in the case, thus mitigating the legal risks to the broader organization.</p><p>Amidst these adversities, Boyaa Interactive’s decision to invest in cryptocurrencies demonstrates its openness to adapting to changing technological landscapes and exploring new opportunities in Web3.</p>

Boyaa Interactive Greenlights $5 Million Investment in Bitcoin and Ether

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