Coolpad Group Limited Announces Discloseable Transaction: Acquisition of MSTR Shares Under Crypto Asset Investment Plan
Coolpad Group Limited Announces Major Acquisition in Crypto Asset Sector
Key Highlights of the Discloseable Transaction
- Adoption of Investment Plan: In mid-February 2026, Coolpad Group Limited (“the Company”) adopted an Investment Plan, authorizing the acquisition of up to US\$5.00 million (approximately HK\$39.05 million) in securities or ETFs listed in the United States, specifically in the crypto assets sector, via on-market transactions.
- Execution of Major Acquisition: On 25 February 2026, Digital Tech Inc., a wholly-owned subsidiary of Coolpad, acquired 39,000 shares of MicroStrategy Incorporated (MSTR) for an aggregate consideration of approximately US\$4.98 million (about HK\$38.89 million), at an average price of US\$127.58 per MSTR share.
- Transaction Structure: The acquisition was conducted on the open market, making the counterparties unidentifiable. The Company confirmed all sellers are independent third parties.
- Impact on Company Holdings: The acquisition represents approximately 0.01% of MSTR’s outstanding shares. MSTR does not become a subsidiary of Coolpad as a result of the purchase.
- Listing Rules Implication: The acquisition qualifies as a discloseable transaction under Rule 14.07 of the Hong Kong Listing Rules, as the relevant percentage ratio exceeds 5% but is below 25%. Therefore, it is subject to reporting and announcement requirements but exempt from shareholder approval.
Details of the Investment Plan
The Investment Plan allows the Group to invest in U.S.-listed securities and ETFs in the crypto asset sector, such as MicroStrategy (MSTR) and crypto-related ETFs like IBIT. The Board will execute such acquisitions at its discretion, depending on market conditions. The Company emphasized that decisions regarding timing, quantity, type, and price of securities purchased or sold under the plan will depend on prevailing market conditions and are at the Board’s discretion.
The Board believes that this strategic move will diversify the Company’s business segments and provide an alternative income stream. However, it also cautions that the crypto asset market is highly volatile, and the value of such investments may fluctuate significantly.
Financial Details and Rationale
- Funding Source: The acquisition was funded entirely from the Group’s internal financial resources.
- Investment Rationale: The Board cited favorable market trends and the future prospects of blockchain technology and crypto assets as the main reasons for the investment. The acquisition is expected to enhance returns and support the Group’s expansion into digital currency and Web 3.0 business opportunities.
- MSTR Company Overview: MicroStrategy Incorporated is a Delaware-based company listed on the Nasdaq Global Select Market (stock symbol: MSTR), widely known as a Bitcoin Treasury company.
MicroStrategy Financial Performance
| Year Ended |
Revenue (US\$’000) |
Income/(Loss) Before Tax (US\$’000) |
Net Income/(Loss) (US\$’000) |
Net Asset Value (US\$’000) |
| 31 Dec 2025 |
477,233 |
(5,525,954) |
(3,848,152) |
44,123,460 |
| 31 Dec 2024 |
463,456 |
(1,934,346) |
(1,166,661) |
18,229,980 |
| 31 Dec 2023 |
496,261 |
(124,525) |
429,121 |
N/A |
Note: Net asset values for 2023 not provided; all figures are audited.
The Company believes that MicroStrategy’s principal activities and market position present an attractive investment opportunity despite recent losses, and aligns with Coolpad’s strategy to increase exposure to digital currencies.
Shareholder Considerations and Price-Sensitive Information
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Potential Share Price Impact: This move signals Coolpad’s commitment to diversifying into the crypto asset sector at a significant scale. Given the volatility of the crypto market and the prominence of MSTR as a proxy for Bitcoin exposure, this investment could influence the Company’s earnings volatility and overall risk profile.
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Disclosure and Compliance: The transaction is classified as a discloseable transaction, which means it is newsworthy and must be announced to the market. However, it does not require shareholder approval. Shareholders should be aware that future transactions under the Investment Plan could further affect the Company’s financial position and share price.
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Risk Warning: The Company explicitly warns that the crypto asset market is highly volatile, and investments in such securities may be subject to substantial price fluctuations. There is no guarantee regarding the timing, quantity, or price of future acquisitions or disposals under this plan.
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Strategic Shift: The Company is actively pursuing opportunities in Web 3.0 and digital currencies, signaling a shift from its traditional business segments (mobile phones, wireless applications, property leasing) toward higher-risk, potentially higher-reward sectors.
Board Composition and Company Details
As of the date of the announcement, the Board consists of two executive directors (Mr. Chen Jiajun, Mr. Ma Fei), two non-executive directors (Mr. Liang Rui, Mr. Xu Yibo), and three independent non-executive directors (Mr. Guo Jinghui, Ms. Wang Guan, Mr. Cheuk Ho Kan). The acquisition was approved and executed per the Company’s memorandum and regulations.
For illustration purposes, currency conversions are based on an exchange rate of US\$1.00 = HK\$7.81.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should be aware of the risks associated with investments in the crypto asset sector and should conduct their own due diligence or consult a financial advisor before making any investment decisions. The information in this article is based on public disclosures by Coolpad Group Limited as of 25 February 2026 and may be subject to change.
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