Macau casino investor Success Universe Group Ltd has entered the world of cryptocurrency with the purchase of US$1.3 million worth of Bitcoin.
In a voluntary announcement via the Hong Kong Stock Exchange on Monday, the company revealed it had purchased 24.3 units of Bitcoin on an open market cryptocurrency exchange platform, financed by the groups internal resources, as part of efforts to diversify its investment portfolio.
In recent times, the Board [has] observed increasing popularity of cryptocurrencies in the commercial world, with inclusion of cryptocurrencies in investment portfolios of institutional investors and more companies accepting cryptocurrencies, including Bitcoin, as an official payment option, Success Universe said.
Although the cryptocurrency market is volatile in the near-term and the prices of cryptocurrencies may be subject to fluctuations, the Board believes that there is still room for cryptocurrencies in general, including that for Bitcoin as a dependable store of value which is one of the longest standing and the largest cryptocurrencies in terms of market capitalization, to appreciate in value.
Having considered the uncertainty in the global economy, the unprecedented government financial stimulus measures, including quantitative easing, adopted around the world, depreciation pressure on the value of fiat currencies due to aggressive increases in money supply by central banks globally, the Board believes that the investment would diversify the Groups investment portfolio and enhance its asset value.
Success Universe recently reported a loss attributable to owners of the company of HK$141.9 million (US$18.3 million) in 2020 due to its share of losses incurred at Macau integrated resort Ponte 16.
The company holds a 49% stake in Ponte 16, with the remaining 51% held by SJM Investment Limited, a subsidiary of Sociedade de Jogos de Macau, S.A. (SJM).