Construction Firm Turns to Crypto Despite Financial Struggles
Hong Kong-based construction company Ming Shing Group Holdings, listed on the Nasdaq, has announced bold plans to purchase 4,250 Bitcoin for approximately $483 million. This strategic move would make Ming Shing the largest corporate Bitcoin holder in Hong Kong, surpassing Buyaa Interactive International, which currently holds around 3,350 BTC.
CEO Wenjin Li emphasized the decision as a forward-looking bet on Bitcoin’s liquidity and long-term appreciation. “We believe Bitcoin represents a strong store of value and a hedge against macroeconomic uncertainty,” he said in a press statement.
However, the timing and scale of the investment raise concerns. The company is currently dealing with significant financial headwinds, having posted a -3.9% profit margin and a $5.35 million loss before interest and taxes for 2025. This raises questions about the feasibility and risk of such a large crypto-focused strategy shift.
Shareholder Dilution Looms as Funding Comes Through Convertible Notes
To fund the $483 million purchase, Ming Shing plans to issue 10-year, 3% convertible notes along with 12-year warrants. While this avoids taking on traditional debt or selling company assets, it introduces the possibility of substantial shareholder dilution.
Currently, Ming Shing has fewer than 13 million shares outstanding. If all the convertible instruments are exercised, the total share count could balloon to over 939 million, drastically diluting existing shareholders’ ownership. This kind of dilution often pressures stock prices unless offset by strong future earnings or asset appreciation.
Despite losing 70.5% of its stock value over the past year, the market reacted positively to the announcement, with a temporary spike in share price. This reflects continued investor interest in digital assets—particularly in Hong Kong, which is positioning itself as a global crypto hub.
As the dust settles, investors and analysts will be closely watching whether Ming Shing’s high-stakes crypto bet pays off—or adds to its financial challenges.
