DL Holdings Makes Bold Bitcoin Mining Entry via Convertible-Bond Strategy
Breaking into crypto's most competitive arena—mining—isn't for the faint of heart. DL Holdings just placed its bet.
Leveraging Convertible Bonds for Market Entry
No cash up front? No problem. The firm's using convertible bonds to fund its mining ambitions—a classic corporate maneuver that lets them dip toes into Bitcoin’s volatile waters without immediate capital strain. Smart? Or just another case of financial engineering masquerading as innovation?
Timing the Bitcoin Cycle
With Bitcoin hovering near recent highs, jumping into mining now requires either guts or a serious belief in the long game. DL Holdings seems to be banking on both—betting that operational leverage and future appreciation will outweigh today’s energy and hardware costs.
Because what’s finance without a little leverage and a lot of hope?
DL Holdings Outlines Bitcoin Mining Strategy
Hong Kong-based DL Holdings Group Limited said it will collaborate with Fortune Peak Limited to enter the Bitcoin mining sector. The company intends to acquire advanced mining equipment via a convertible bond issuance. It aims to become Hong Kong’s first listed Bitcoin hashrate stock. DL Holdings projects an annual output of roughly 200 BTC. The company plans to build more than 4,000 BTC reserves over two years.
Fortune Peak’s controlling shareholder, a former Chief Investment Officer at Antalpha Capital, brings experience in digital-asset operations and technology. This partnership provides DL Holdings access to newer mining hardware and operational expertise.
Convertible Bonds to Fund Mining Expansion
DL Holdings will purchase 2,200 S21XP HYD miners with an estimated hashrate of 1,040,600 TH/s. The company will fund the $21.85 million transaction by issuing zero-coupon convertible bonds. The initial conversion price is HK$3.17 ($0.41) per share. This represents about an 8.65% discount to the five-day average closing price. The bonds and the shares issued upon conversion will be subject to a two-year lock-up.
The company will also issue 40 million warrants at an exercise price of HK$3.80 ($0.49) per share, about a 9.51% premium to the five-day average. Half of the warrant shares will carry a six-month lock-up. Up to 13.44 million earn-out shares may be issued if performance targets are met.
Bitcoin Market Context and Institutional Interest
Bitcoin accounts for roughly 55% to 58% of total crypto market capitalization and has an estimated market value of about $2.29 trillion as of September 2025. Institutional interest has grown, with governments including the US and UK reporting notable holdings and asset managers such as BlackRock and Fidelity offering Bitcoin exchange-traded funds.
DL Holdings said direct bitcoin mining could diversify its balance sheet and provide recurring revenue. Management estimates the new equipment could generate about 200 BTC annually, which could produce around $20 million in revenue at illustrative prices. The company also raised over $83.5 million in August 2025 to fund digital-finance initiatives such as tokenized assets and virtual-asset trading services.
