CIMG Inc Raises $55 Million to Buy Bitcoin
Digital health and wellness company CIMG Inc. has raised $55 million in a share sale to expand its cryptocurrency storage business, joining a list of companies raising funds in crypto this week.
CIMG said on Tuesday it had issued 220 million common shares to acquire 500 bitcoins to expand its reserve assets as part of a “financial management strategy.”
It comes after Michael Saylor's Strategy made another big Bitcoin purchase and Japan's Metaplanet signaled further acquisitions after making changes to its capital structure.
The goal is a long-term strategy for owning bitcoins
CIMG sold its shares at 25 cents apiece to buy bitcoin, which was worth about $55.51 million at press time, according to CoinMarketCap.
The company's board of directors said they are “committed to a long-term strategy of owning bitcoin” to create a solid foundation for investors, and chairman and CEO Wang Jianshuang added that the company will not limit its presence to just bitcoin.
“The company intends to continue to increase its digital asset reserves and develop cooperation within the AI and cryptocurrency ecosystems such as Merlin Chain,” Jianshuang said.
Shares of CIMG Inc. (IMG) closed Tuesday's trading on the Nasdaq at $0.25 per share, down 3.53% on the day, according to Google Finance.
IMG shares fell 3.53% in full-day trading on Tuesday. Source: Google Finance.
Strategy and Metaplanet Buy Bitcoin
This comes as other major public Bitcoin holders take steps to increase their holdings.
Strategy purchased 4,048 bitcoins for $449.3 million between Aug. 25 and Monday, according to a U.S. Securities and Exchange Commission filing Tuesday.
Strategy's latest Bitcoin purchase was made at an average price of $110,981 per BTC, according to CoinGecko, with the crypto asset briefly rising above $113,000 and falling below $108,000 on Friday.
Strategy's latest Bitcoin purchases were made using proceeds from four ATM offerings.
Meanwhile, Japanese bitcoin staking company Metaplanet has received shareholder approval to overhaul its capital structure, paving the way for it to potentially raise billions in funds for its bitcoin accumulation strategy.
Strategy currently holds 636,505 bitcoins, while Metaplanet Inc has accumulated 20,000 bitcoins, making them the first and sixth largest public bitcoin hoards, respectively, according to BitcoinTreasuries.NET.
At the same time, the inflow of investments into Bitcoin products is slowing down.
Source: cryptonews.net
