The Bitcoin Treasury will receive $500 million from a South Korean media company.

The goal of K Wave Media is to become the “Metaplanet of Korea,” and they have revealed that they would be funding a Bitcoin-treasury strategy with a securities transaction for $500 million.

A securities purchase agreement with a potential value of up to $500 million has been entered into by the South Korean entertainment business K Wave Media in order to finance a cryptocurrency treasury strategy that is focused on Bitcoin.

An statement made on June 4 said that K Wave has signed a deal with Bitcoin Strategic Reserve KWM regarding the sale of up to $500 million worth of ordinary shares in order to support its Bitcoin treasury.

“We are reinforcing our commitment to decentralization, agility, and future-facing value creation by embedding Bitcoin into our core strategy,” said Ted Kim, co-interim CEO of K Wave Media. “BTC is a cryptocurrency that is integrated into our core strategy.”

A similar Bitcoin-focused approach, which was inspired by business intelligence firm approach (previously MicroStrategy), was adopted by the company, which said that it aspires to become the “Metaplanet of Korea.” The company’s stock witnessed a significant increase after adopting this strategy.

How the Bitcoin Treasury is Being Financed
The proceeds from the transaction will be used to support K Wave Media’s “Bitcoin-centric digital asset treasury strategy,” which suggests that the company may acquire more cryptocurrencies in addition to Bitcoin.

The cash will also be used by K Wave Media for mergers and acquisitions, which will allow the company to develop its content and companies connected to K-pop industries. Nevertheless, Bitcoin is at the forefront and epicentre of such plans:

“In accordance with this initiative, K Wave will, subject to certain limitations, allocate a significant portion of the proceeds received from the sale of any shares under the facility to the purchase of Bitcoin, the long-term holding of Bitcoin, and the optimization of Bitcoin’s yield.”

Additionally, the business intends to take part in the operation of Bitcoin Lightning Network nodes and to make investments in infrastructure that would support on-chain transaction incentives and decentralization.

According to information obtained by Bitcoin Treasuries, K Wave Media is the most recent in a growing number of publicly traded corporations that have begun to accept Bitcoin as a corporate reserve asset. This trend started with MicroStrategy in the year 2020 and has since gained popularity among companies in Asia, including Metaplanet.