Jack Ma-Linked Yunfeng Stashes $44M in Ethereum for Web3 Push

TLDR:

• Yunfeng Financial Group purchased 10,000 ETH worth $44M from internal cash reserves.
• The Ethereum investment supports Web3 growth, RWA tokenization, and client financial autonomy.
• ETH inclusion allows Yunfeng to explore new models in insurance and digital asset innovation.
• Company will monitor market and regulatory changes to adjust strategic reserve assets as needed.

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Yunfeng Financial Group, connected to Jack Ma, has taken a major step into digital assets. The company purchased 10,000 ETH valued at $44 million. The move forms part of its strategy to expand into Web3, Real World Assets, and digital currency. 

Yunfeng said the ETH will be treated as strategic reserve assets. The company emphasized that cryptocurrency markets remain volatile, and investors should proceed cautiously.

Yunfeng Ethereum Investment Supports Web3 Expansion

According to a company announcement, Yunfeng’s board approved the ETH purchase to strengthen its strategic reserve. 

The group used internal cash reserves to fund the $44 million acquisition. The purchase aligns with earlier plans to explore frontier sectors, including Web3, AI, ESG assets, and digital currencies. Huang Xin, Executive Director and Interim CEO, confirmed that ETH will be accounted for in the financial statements.

Yunfeng sees ETH as infrastructure for tokenizing Real World Assets. The company plans to integrate Ethereum into financial and technological services for clients. The acquisition may also optimize its asset structure and reduce reliance on traditional currencies. 

The group will continue monitoring market conditions to adjust the size of its reserve.

The company emphasized that the purchase is below the 5% threshold under Hong Kong Listing Rules. As such, it is not classified as a notifiable transaction. 

Yunfeng intends to comply with applicable rules if future purchases exceed thresholds. This cautious approach ensures regulatory alignment while exploring crypto opportunities.

ETH Use in Insurance and Innovation Scenarios

Yunfeng plans to explore Ethereum applications within its insurance business. 

The company is investigating potential models compatible with Web3 and digital assets. This approach aims to integrate technology with finance for enhanced client services. It may also allow for more innovative financial offerings in the future.

The board highlighted the importance of monitoring macroeconomic factors and regulatory changes. ETH’s price fluctuations are expected, so strategic flexibility is key. Yunfeng stressed that all investors should exercise caution when dealing with its securities. 

The company sees its ETH investment as a measured step into the growing digital asset landscape.

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