Tian Ruixiang Holdings Ltd, a company listed on Nasdaq under the ticker TIRX, has announced plans for a significant acquisition involving Bitcoin. The company has entered into a strategic deal where an undisclosed investor will provide 15,000 Bitcoin in exchange for equity in Tian Ruixiang. With Bitcoin priced around $75,000 at the time, this contribution is valued at approximately $1.1 billion.
This deal is not just about Bitcoin. It also includes a strategic partnership aimed at advancing initiatives in artificial intelligence and cryptocurrency. As part of this collaboration, an innovation lab will be established to develop AI-driven trading and risk management solutions, alongside blockchain infrastructure and decentralized applications, with a focus on layer-2 networks, DeFi, and NFTs.
The identity of the investor remains a mystery, described only as a global player with significant experience in digital assets and technology markets. Details regarding the transaction's timing, custody, and settlement procedures have not been disclosed.
Since its founding in 2010, Tian Ruixiang has operated primarily as an insurance brokerage in China, offering property and casualty insurance services. Following this announcement, the company's stock saw a dramatic 190% increase in early trading, boosting its market capitalization to around $9.5 million, which remains significantly lower than the value implied by the Bitcoin transaction.
If this acquisition is completed, Tian Ruixiang would ascend to become one of the top holders of Bitcoin among publicly traded companies, ranking eighth worldwide. For context, U.S.-based Coinbase holds 14,548 Bitcoin, while Riot Platforms, a mining company, holds 18,005 BTC, according to BitcoinTreasuries.NET.
This development follows Tian Ruixiang's earlier disclosure on January 30, indicating advanced discussions to acquire a Hong Kong-based insurance brokerage specializing in AI and crypto-enabled wealth management.
The landscape for Bitcoin treasury companies is challenging, with nearly 200 publicly traded firms holding an aggregate of about 1,135,671 BTC facing recent market downturns. Strategy, which began its Bitcoin acquisition in August 2020, reports an average purchase price of $76,052 per Bitcoin, currently below market value. Similarly, Twenty One Capital, founded by Jack Mallers, holds 43,514 Bitcoin with an average acquisition cost of $87,280 each.
While Bitcoin treasuries initially captured Wall Street's attention, their valuations have suffered amid broader market declines. Altan Tutar, co-founder and CEO of MoreMarkets, predicted that many digital asset treasury companies might not survive beyond 2026, particularly those focused on altcoins. Ryan Chow, co-founder of Solv Protocol, echoed this sentiment, suggesting that many will struggle in future downturns.