Inside Chinese tycoon’s new Bitcoin expansion strategy

Chinese cryptocurrency entrepreneur Li Lin is expanding into Hong Kong’s financial market, aiming to tap growing demand for digital asset investment products.

Hong Kong-listed Bitfire Group said it will acquire the trading systems and investment team of Avenir Group, Li’s family office, for $1.6 million. Li is the largest shareholder in Bitfire, News.Az reports, citing Reuters.

Li built Huobi, now known as HTX, into one of the world’s largest cryptocurrency exchanges before regulatory crackdowns in mainland China reshaped the industry.

After selling a controlling stake in the platform to crypto entrepreneur Justin Sun in 2022, Li shifted focus to managing investments through his family office.

Cryptocurrency trading has been banned in mainland China since 2021, while Hong Kong has been positioning itself as a global hub for virtual assets.

With the new acquisition, Bitfire plans to launch a regulated bitcoin-denominated asset management strategy called “Alpha BTC.”

According to CEO Livio Weng, the firm aims to attract investments equivalent to more than 10,000 bitcoins—worth roughly $760 million—within a year.

The strategy will generate returns through derivatives trading, including options, using bitcoin or exchange-traded funds as underlying assets.

Bitfire estimates that at least 40 Hong Kong-listed companies already hold bitcoin, reflecting growing corporate interest in digital assets.

Bitcoin recently traded near $76,000, recovering from earlier volatility this year.

Since 2024, Avenir has also become one of Asia’s largest investors in bitcoin ETFs, holding a significant stake in BlackRock’s iShares Bitcoin Trust.

The move highlights Hong Kong’s increasing appeal as a regulated gateway for crypto investment, especially as mainland China maintains strict restrictions.

As institutional demand rises, the city is positioning itself at the center of Asia’s evolving digital asset market.

News.Az 

By Aysel Mammadzada