Ming Shing Group Holdings, a construction firm listed on Nasdaq in Hong Kong, announced on Wednesday its agreement to acquire 4,250 Bitcoin for around $483 million, joining the growing list of companies accumulating cryptocurrency in their reserves.
If the deal succeeds, Ming Shing will become the largest Bitcoin (BTC) holder in Hong Kong, surpassing Buyaa Ineractive International, which holds 3,350 BTC, as corporate adoption of Bitcoin and cryptocurrency accelerates.
“We believe the Bitcoin market offers high liquidity and this investment can leverage the potential appreciation of Bitcoin, enhancing the Company’s assets,” stated Wenjin Li, CEO of Ming Shing.
According to Stock Analysis data, Ming Shing’s financials show a negative profit margin of -3.9% in 2025, alongside a pre-interest and tax loss of $5.35 million.
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Rather than paying cash for the BTC, Ming Shing intends to issue 10-year, 3% convertible notes (convertible at $1.20/share) and 12-year warrants for a total of 402,467,916 shares (exercisable at $1.25/share).
Two firms based in the British Virgin Islands are part of this agreement. Winning Mission Group is selling the 4,250 BTC and will receive a convertible note worth $241,480,750, along with a warrant for 201,233,958 shares. Rich Plenty Investment will receive the same arrangement from Ming Shing and will issue a promissory note to Winning Mission for 2,125 BTC.
Massive potential dilution for shareholders
This structure poses a significant risk of diluting Ming Shing’s existing shareholders. Currently, the company has less than 13 million shares outstanding. If the convertible notes are exercised and the warrants remain unexercised, the share count could rise to over 415 million, resulting in a mere 3.1% ownership for current shareholders.
In an extreme case, if all notes, warrants, and accrued interest were fully converted, Ming Shing’s share count could approach 939 million, reducing existing holders to approximately 1.4% ownership. Additionally, the transaction requires shareholder approval to authorize more shares, as the company currently has only 100 million authorized.
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According to Google Finance data, Ming Shing’s stock surged following the announcement, despite facing bearish trends over the longer term. The company’s stock has plummeted 70.5% in value over the past year, including a 44% decline in the last month and 24% in the last five days.
The initial spike brought the price to $2.15 on Wednesday, but most gains were reversed within the same day. Nonetheless, at Ming Ching’s current price of $1.65, stocks have increased nearly 11.5% by Thursday.
Ming Shing Group Holdings Ltd 24-hour price chart. Source: Google Finance
Hong Kong pushes deeper into crypto
This announcement is part of Hong Kong’s broader strategy to establish itself as a digital asset hub. Regulatory bodies approved spot Bitcoin and Ether exchange-traded funds in April 2024 and issued the first licenses for crypto asset service providers earlier this year.
In February, the Securities and Futures Commission (SFC) launched the “ASPIRe” roadmap to guide local regulation. More recently, the SFC finalized a stablecoin ordinance to criminalize unlicensed issuers and provided new custody guidance for crypto firms.
This week, reports indicated that CMB International Securities, a subsidiary of one of China’s major banks, had started providing virtual asset trading services in Hong Kong.
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