What happened?
Dafeng Electric publicly announced on August 13 that it has become the first publicly listed company in Taiwan to include Bitcoin in its long-term reserve assets. This move immediately received a positive market response, propelling its stock price to hit the daily limit on the first trading day following the announcement (August 14).
In the face of global inflationary pressures, Dafeng Electric has followed the approach of MicroStrategy in the United States, converting part of its cash assets into Bitcoin, which is regarded as “digital gold,” to combat the depreciation of purchasing power of fiat currency and to seek diversified asset allocation.
Taiwan’s first case! Dafeng Electric bets on Bitcoin, stock price surges to limit
The capital market in Taiwan has witnessed a historic moment. Dafeng Electric (6184), a cable television and broadband service provider, dropped a bombshell on the evening of August 13, announcing that it would include Bitcoin in its long-term asset reserves, becoming the first publicly listed company in Taiwan to embrace cryptocurrency.
Upon opening on August 14, the stock price of Dafeng Electric jumped to the daily limit, locking in at NT$56.1, with over 2,000 buy orders waiting to enter the market.
Faced with ongoing global inflationary pressures and an unstable interest rate environment, companies holding cash face the risk of declining purchasing power. According to the Economic Daily, the board of Dafeng Electric decided to convert part of its cash assets into Bitcoin in order to diversify risks in a volatile economic landscape. They stated that Bitcoin, with its fixed supply, decentralized nature, and high global liquidity, is akin to a new generation of “digital gold,” which can bring greater stability and flexibility to the company’s capital.
To ensure the robust execution of this strategy, Dafeng Electric also announced the establishment of a “Digital Asset Committee.” The committee, chaired by director Dai Yonghui, integrates the company’s internal risk management, legal, cybersecurity, and strategic core departments to formulate rigorous asset allocation principles, risk control mechanisms, and information disclosure regulations, ensuring that the decision-making process complies with regulations and protects shareholder interests.
A company spokesperson emphasized, “Incorporating Bitcoin into long-term assets is an important step for us to embrace the wave of the digital economy.” He also stated that this investment will be completely separated from the daily operating capital to ensure that its core cable television and broadband business is not affected. The company will adhere to the principle of “stability first,” adopting a prudent and phased strategy for execution.
This announcement immediately sparked significant attention in the capital market. Investors generally view this decision as a demonstration effect, anticipating that it may encourage other listed companies in Taiwan to follow suit and explore the potential of digital asset management.
The optimism in the market was directly reflected in stock performance. Upon opening on August 14, the stock price of Dafeng Electric surged by NT$5.1, reaching the limit price of NT$56.1, with over 2,000 buy orders hanging in the air.
Who is Dafeng Electric?
Dafeng Electric, officially known as Dafeng Cable Television Co., Ltd., is a major cable television and broadband Internet service provider in Taiwan. Established in 1996, the company primarily operates in New Taipei City, providing cable television services to residents in Banqiao, Tucheng, Zhonghe, and other areas, and is one of the largest cable television system operators in New Taipei City.
In addition to traditional television channel content, Dafeng Electric has actively developed its broadband Internet business in recent years, competing in the market under its brand “DADA Broadband,” which it views as the core of future operational growth.
While announcing this innovative financial maneuver, Dafeng Electric also disclosed its operational performance. In the first half of this year, the consolidated revenue reached NT$1.08 billion, with a net profit attributable to the parent company of NT$262 million, a year-on-year increase of 4.8%. Among them, the broadband business revenue contributed NT$440 million, accounting for 40.7% of consolidated revenue, reflecting a growth of 12.8% compared to the same period last year.
Chairman Zhang Mingzhi stated that despite the declining trend in the total number of cable television households in Taiwan, the company will continue to strive to maintain and provide quality channel content. However, the future development focus will undoubtedly be placed on broadband business. The number of users under “DADA Broadband” has reached 179,000 in the first half of this year, with a net increase of over 5,000 users.
Additionally, Dafeng Electric is steadily advancing the initial public offering (IPO) plan for its subsidiary “DADA Broadband,” having recently completed a cash increase of NT$1.8 billion and is preparing for a second capital increase, aiming to inject stronger momentum for future market expansion.
Dafeng Electric emulates MicroStrategy, opening a new chapter in asset management
The decision of Dafeng Electric to include Bitcoin in its reserve assets largely replicates the approach taken by MicroStrategy, a U.S. publicly listed company. Since 2020, MicroStrategy has been buying Bitcoin in unprecedented quantities as its primary inventory asset, positioning itself as a Bitcoin concept stock, with its stock price highly correlated with Bitcoin’s fluctuations.
As the first publicly listed company in Taiwan to incorporate cryptocurrency into its financial strategy, Dafeng Electric plays the role of a “pioneer.” The immediate limit-up response in its stock price post-announcement will undoubtedly attract the attention of other businesses that are still observing from the sidelines. If this move brings sustained positive benefits to Dafeng Electric, it may trigger a wave of imitation, prompting more companies to begin researching or even allocating digital assets.
At the same time, as companies begin to engage with digital assets, existing accounting standards, tax regulations, and information disclosure requirements will face scrutiny. Regulatory authorities (the Financial Supervisory Commission) will need to accelerate the formulation of related supervisory frameworks to ensure market transparency and investor protection. The Dafeng Electric case will serve as a key stress test, pushing Taiwan’s regulatory framework to keep pace with the times.
In the future, when evaluating companies like Dafeng Electric, investors will need to consider not only traditional operational, revenue, and profit indicators but also the cryptocurrency positions they hold and their value fluctuations, adding a new dimension to stock market analysis. Investors must also possess a basic understanding of the cryptocurrency market to assess its potential impact on the company’s financial statements and stock prices.