At its board meeting on August 8, 2025, Zhitong Technology (8932) adopted a key decision: adopting a Bitcoin reserve strategy and establishing a partnership with Top Win International Limited (SORA), an international digital asset investment firm. This makes Zhitong the first listed company in Taiwan to adopt a Bitcoin capital strategy, marking its transformation from a traditional technology company to one focused on blockchain and financial technology.
In an ABMedia interview with Zhitong Technology, General Manager Cai Kunhuang stated that this move embodies the company's philosophy of "evolving with the times. " He emphasized, "As the first listed company in Taiwan to adopt a Bitcoin reserve strategy, this not only aligns with Zhitong's consistent philosophy of evolving with the times, but also represents a crucial step in our transition from a traditional tech company to a new chapter in blockchain and financial technology. We believe that digital assets will become a key engine driving Zhitong's growth and enhancing its international competitiveness."
Strategic Motivation: From Asset Preservation to Capital Market Effects
Zhitong considers Bitcoin as part of its corporate asset allocation strategy, driven by three key motivations. First, Bitcoin's scarcity. With a cap of 21 million coins, it offers protection against inflation and fiat currency devaluation. Second, Zhitong's business spans multiple currencies, and Bitcoin can be used as a currency hedging tool to mitigate the risks associated with currency fluctuations. Finally, Bitcoin offers valuation leverage in the capital market. The company expects to leverage its NAV and EPS through investments in its Bitcoin reserves, further enhancing shareholder value.
Investment tool design: convertible bonds with both offensive and defensive capabilities
Unlike direct cryptocurrency purchases, Zhitong chose to enter the Bitcoin market through a $2 million, three-year convertible note issued by SORA. The company noted that this was a strategic move with both offensive and defensive advantages:
- When the market goes up, participate in capital appreciation through share conversion
- When the market goes down, retain the creditor's rights protection and continue to enjoy 3% fixed interest
Such an arrangement not only ensures that the company can participate in the upside of Bitcoin capital strategy, but also effectively controls risks and protects the interests of investors.
Cooperation with SORA: Compliance first, gradual implementation
Zhitong emphasized that the key to its partnership with SORA lies in its accumulated compliance experience in markets such as Japan, Hong Kong, and South Korea. Since Taiwan's accounting standards and regulatory stance regarding direct Bitcoin holdings by listed companies remain unclear, Zhitong has chosen to initially participate indirectly through SORA's structure and absorb its compliance and accounting practices. The company will only consider directly incorporating Bitcoin into its balance sheet once IFRS (International Financial Reporting Standards Foundation) and Taiwanese policies become more clearly defined.
Compared with Dafeng Electric's direct currency purchase approach, Zhitong's differentiated strategy is more gradual, highlighting the principle of "compliance first, protecting shareholders."
Business integration: new momentum for payment and cross-border finance
Zhitong stated that the Bitcoin strategy is not only an asset-level layout, but also plans to integrate it with its FinShell Pay platform and future payment business. Future development is not ruled out:
- Bitcoin and stablecoin payments
- Microfinance secured by crypto assets (in conjunction with an Indian NBFC license)
- Cross-border settlement services to reduce costs and improve efficiency
Notably, Zhitong has completed the acquisition of India's Letul Investments Private Limited and obtained an NBFC license, laying the foundation for the expansion of its international digital financial business. This will enable the company to promote the in-depth integration of Bitcoin and fintech applications in the global market.
Market reaction and shareholder feedback
Following the announcement, Zhitong's share price and trading volume strengthened, reflecting strong market acceptance of the new strategy. Zhitong stated that major shareholders also responded positively, believing that this move will create a new growth story for Zhitong and attract more international investors.
Some viewpoints point out that if Bitcoin maintains its bullish trend, Zhitong's layout may bring about a sustained stock price support effect, and even lead Taiwan's listed companies into a new era of "Bitcoinization."
Risk Management: Long-term Holding and Financial Hedging
In response to concerns about volatility, Zhitong has proposed multiple lines of defense, including phased entry to mitigate single-point risk, adopting a long-term holding (HODL) strategy to avoid short-term speculation, and utilizing financial hedging instruments when necessary. These measures demonstrate the company's commitment to risk management and its commitment to striking a balance between innovation and prudence.
Implications for the capital market
Zhitong's move represents not only a transformation for the company itself but is also seen as a significant inspiration for Taiwan and Asian capital markets. The company hopes to demonstrate through its own practice that Bitcoin is not just a speculative asset but can also be a component of a listed company's capital strategy. This move could rewrite the narrative of corporate valuation, expanding it from the traditional "business x profitability" to "business x digital asset reserves."
Zhitong views Bitcoin not simply as an investment but as part of its long-term corporate strategy. Through asset preservation, business innovation, and international collaboration, it is building a next-generation "blockchain + fintech" enterprise blueprint. This case study may become a significant milestone for Asian companies, ushering in a new chapter for the future of capital markets.
The article " Exclusive Interview with Taiwan's First Bitcoin Strategy Listed Company: Zhitong Creates Taiwan Micro Strategy, Stock Price and Volume Rise " was first published in " NONE LAND Langlian ".
