Struggling Japanese AI Firm Turns to Bitcoin via Hong Kong Subsidiary
Quantum Solutions, a Tokyo-listed AI firm, is seeking to acquire up to 3,000 BTC through its Hong Kong subsidiary, GPT Pals Studio, following a report indicating significant financial distress. The company is attempting to diversify its portfolio and mitigate foreign exchange risks by investing in Bitcoin, a strategy that increasingly appeals to financially struggling firms. Despite a net loss of ¥160 million in the last quarter and a cash reserve of just ¥146 million, Quantum Solutions aims to promote its new crypto investments while borrowing $10 million for initial purchases. Analysts suggest these treasury strategies are more about reshaping corporate perception than addressing underlying financial issues. This trend is seen with other distressed firms, such as the Australian biotech company Opyl Limited, which also announced a Bitcoin treasury strategy. Critics note that for such companies, investing in crypto may represent a gamble rather than a prudent risk management strategy, raising doubts about the sustainability of these moves.
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