Tian Ruixiang plans to acquire up to 15K Bitcoin in equity-linked deal

2 hours ago

Tian Ruixiang Holdings Ltd (Nasdaq: TIRX) said it has entered a strategical statement nether which an unnamed capitalist would lend 15,000 Bitcoin successful speech for an equity involvement successful the company.

At Bitcoin’s (BTC) terms of astir $75,000 astatine the clip of writing, the projected publication would beryllium valued astatine astir $1.1 billion.

Tian Ruixiang said the statement besides includes a strategical concern focused connected artificial quality and crypto initiatives, including the instauration of a associated innovation laboratory to make AI-powered trading and hazard absorption tools, blockchain infrastructure, decentralized applications and products spanning layer-2 networks, DeFi and nonfungible tokens.

The institution described the counterparty lone arsenic a planetary integer plus capitalist with acquisition crossed cryptocurrency and exertion markets, and did not disclose transaction timing, custody arrangements oregon colony mechanics.

Tian Ruixiang was founded successful 2010 and operates arsenic an security brokerage successful China, providing spot and casualty security services done its subsidiaries.

The company’s shares roseate astir 190% successful aboriginal trading pursuing the announcement, according to Yahoo Finance, giving it an intraday marketplace capitalization of astir $9.5 million, acold beneath the implied worth of the projected Bitcoin transaction.

If the woody is completed and Tian Ruixiang acquires 15,000 Bitcoin, it would fertile arsenic the world’s eighth-largest publically traded Bitcoin treasury company.

By comparison, US-based crypto speech Coinbase holds 14,548 Bitcoin, portion Riot Platforms, a Bitcoin mining company, holds 18,005 BTC, according to data from BitcoinTreasuries.NET.

The quality follows a Jan. 30 disclosure successful which Tian Ruixiang said it was successful precocious talks to get an unnamed Hong Kong–based security brokerage focused connected AI- and crypto-enabled wealthiness management.

Bitcoin treasury companies successful the reddish arsenic marketplace weakens

Nearly 200 publically traded companies presently clasp Bitcoin connected their equilibrium sheets, with combined holdings of astir 1,135,671 BTC. But with Bitcoin’s caller pullback, respective companies that built treasury positions are sitting connected unrealized losses.

Strategy, which began buying Bitcoin successful August 2020, reports an mean acquisition price of $76,052 per Bitcoin, leaving its holdings underwater arsenic Bitcoin slipped to below $75,000 astatine the clip of writing.

A much caller entrant, Twenty One Capital, co-founded by Jack Mallers, launched its treasury successful April and holds 43,514 Bitcoin, making it the 3rd largest Bitcoin treasury. The institution past disclosed an mean acquisition cost of $87,280 per Bitcoin.

While Bitcoin treasury companies initially drew beardown attraction from Wall Street, their valuations person struggled arsenic the broader crypto market has weakened.

In December, Altan Tutar, co-founder and CEO of crypto output level MoreMarkets, told Cointelegraph that astir digital plus treasury companies are improbable to past successful 2026, predicting that altcoin-focused treasuries volition neglect first.

Ryan Chow, co-founder of the Bitcoin level Solv Protocol, agreed, saying galore Bitcoin treasury companies are “unlikely to past the adjacent downturn.”

Magazine: A ‘tsunami’ of wealthiness is headed for crypto: Nansen’s Alex Svanevik

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