Digital health and sales company CIMG Inc. has raised $55 million by selling shares to expand its Bitcoin holdings.
According to the report shared on Tuesday, the company sold 220 million shares in exchange for 500 Bitcoin as part of its “financial management strategy” to build long-term value. CEO Wang Jianshuang said the company also wants to work with projects in AI and crypto, like Merlin Chain.
Each share was sold at 25 cents, which the company used to buy Bitcoin now worth about $55.51 million, according to CoinMarketCap. The company’s stock closed the day at $0.25 on Nasdaq, down 3.53%.
“The Company intends to continue to increase its digital asset reserves and pursue collaborations across AI and crypto ecosystems, such as Merlin Chain.” Wang said in a statement.
The board said they are “committed to a long-term Bitcoin holding strategy” to give investors a strong value base. CIMG also said they will not only focus on Bitcoin but plan to expand into other digital assets in the future.
Other Companies Join the Bitcoin Race
With this, CIMG is joining the trend of companies stockpiling Bitcoin in their balance sheet. Strategy, a software company started this trend. Between Aug 25 and Monday, the company has bought $449.3 million worth of Bitcoin, according to a filing with the SEC.
Strategy made purchases at an average price of about $110,981 per Bitcoin, during a week when the crypto price moved between $108,000 and $113,000, according to CoinGecko.
Strategy used money from equity sales to make these purchases. The company now has 636,505 Bitcoin. This makes it the largest public Bitcoin treasury. In Japan, Metaplanet changed its capital structure to raise money for Bitcoin purchases. Metaplanet holds 20,000 Bitcoin, the sixth-largest public treasury.
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