Zhitong Sci-Tech Unveils Bitcoin Strategy and NBFC Deal
Zhitong Sci-Tech (8932) has become Taiwan’s first listed firm to adopt a bitcoin strategy. On August 8, the board approved a US$2 million investment in three-year convertible bonds issued by SORA, integrating Zhitong into SORA’s global bitcoin reserve network. Simultaneously, Zhitong will acquire Indian NBFC Letul Investments, securing licences for cross-border fintech, crypto-asset lending, and Web3 payments. The dual bitcoin strategy and NBFC deal echo moves by Japan’s Metaplanet, whose share price surged nearly 40× after launching its bitcoin reserve. Following Zhitong’s announcement, its stock price and trading volume spiked. Crypto traders should monitor this emerging trend of Asian firms deploying bitcoin strategies to boost asset valuations, enhance NAV and EPS, and open new revenue streams.
Bullish
Zhitong Sci-Tech’s adoption of a bitcoin strategy through a US$2 million convertible bond investment and acquisition of an NBFC for crypto services represents growing institutional demand for bitcoin. In the short term, announcements of large corporate bitcoin holdings tend to boost market sentiment and trading volumes, potentially driving price spikes. Over the long term, broader corporate use of bitcoin as a reserve asset could reduce supply on exchanges and underpin sustained price support. Given these factors, this news is bullish for bitcoin.