Once celebrated as a cryptocurrency winner in Hong Kong's stock market, BOYAA Interactive is now grappling with the severe volatility of digital assets. In early March 2026, the Shenzhen-based gaming firm issued a profit warning, projecting an attributable net loss of approximately HK$2.3 billion to HK$2.4 billion for the full year 2025. This marks a dramatic reversal from the restated profit of about HK$969 million recorded in 2024.
The primary driver behind the anticipated loss is a significant decrease in the fair value of the company's cryptocurrency holdings. As one of the listed companies in Hong Kong with the largest crypto reserves, BOYAA held around 3,353 Bitcoin as of its mid-2025 report, with an average acquisition cost of about $58,695 per coin. By September 2025, the company had increased its holdings to approximately 3,926 Bitcoin, raising the average purchase price to $66,094 per unit.
Fluctuations in the fair value of cryptocurrencies have directly impacted the company's income statement. While BOYAA recorded a fair value gain of HK$190 million on digital assets in the first half of 2025, a market downturn in the latter half of the year resulted in a net decrease for the full year. Excluding one-off factors such as digital assets and equity investments, the company expects its core net profit for 2025 to decline by about 55% to 60%.
Beyond cryptocurrency depreciation, multiple factors contributed to the profit slump. Interest income fell year-on-year due to the use of bank deposits for continued crypto purchases, while increased employee compensation and benefits further squeezed profit margins.
BOYAA has drawn significant market attention in recent years for its heavy investment in cryptocurrencies. The company received shareholder approval in late 2023 to allocate $100 million for crypto purchases, followed by an additional $100 million authorization in April 2024 specifically for Bitcoin and Ethereum. By March 2025, BOYAA had utilized the full $200 million allocation, becoming the Hong Kong-listed company with the largest Bitcoin holdings.
During the crypto bull market, the company's performance shone brightly. In 2024, BOYAA reported operating revenue of RMB 457 million, up 15.79% year-on-year, while net profit attributable to shareholders surged 654.21% to RMB 884 million. Its stock price climbed accordingly, reaching a high of HK$9.36 in 2025.
However, the same digital assets that once boosted profits have now become a liability. As cryptocurrency markets entered a deep correction in the second half of 2025, fair value gains slowed significantly and turned negative, directly causing the company to swing to a loss. The company had already flagged in its August 2025 interim profit warning that fair value gains from cryptocurrencies would be lower than the same period in 2024.
Apart from digital asset volatility, BOYAA's traditional gaming business is also under pressure. Interim reports for 2025 showed first-half revenue of HK$223 million, down 5.2% year-on-year. After excluding fair value changes in financial assets, adjusted net profit decreased by 42.6%. Operational data revealed approximately 220,000 paying players in the second quarter of 2025, down 3.5% from the previous quarter, while daily active users fell 1.0% to about 1.23 million. Although average revenue per paying user for its mobile Texas Hold'em game increased, it was insufficient to offset the overall decline in user numbers.
Since 2024, BOYAA has pursued a strategic shift toward Web3, aiming to become a leading Web3-focused listed company and continuing to invest in Web3 gaming and infrastructure development. However, these new ventures have yet to generate substantial commercial revenue and are unlikely to counterbalance the dual pressures of declining core business performance and crypto asset volatility in the short term.
Following the profit warning, BOYAA's stock price came under significant pressure. At the time of writing, shares traded around HK$2.81, nearly 70% below their 52-week high of HK$9.36, with a total market capitalization of approximately HK$2.2 billion. Despite a low price-to-earnings ratio of about 1.8 times, investor concerns persist over the company's heavy reliance on cryptocurrency price swings.
Analysts note that BOYAA's sharp performance fluctuations highlight a typical challenge for "crypto concept stocks": fair value gains can substantially boost profits during market upswings, but sudden downturns can lead to massive impairments that erase earnings. For investors, accurately assessing the core business value versus crypto asset risks of such companies presents a new challenge. Whether BOYAA can achieve a stable transition through its Web3 initiatives remains to be seen.
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