Iore to Sell Bitcoin Holdings, Prioritizing AI Infrastructure Investment Amidst Network Risk Reassessment

Japanese listed company Iore announced on October 30th that its board of directors has resolved to sell all of its 151.21 Bitcoin holdings by the end of November. The company plans to prioritize the allocation of the raised funds, estimated at 1.831 billion JPY, towards investments in AI data centers and computing power, beginning in early December.

According to Iore’s announcement, the decision to sell the Bitcoin was attributed to rapidly expanding network threats and a reassessment of the risk and profit potential of its assets and investments. The company anticipates recognizing an estimated loss of approximately 254 million JPY from the sale. Iore stated it may continue to hold its HYPE tokens.

The sale of Bitcoin is part of a broader capital allocation strategy by Iore. On the same day as the announcement, Iore’s crypto lending service, ‘らくらくちょコイン’, reported a security incident involving improper withdrawals at a major overseas exchange. While Iore did not explicitly name the exchange or directly link the incident as the sole reason for its Bitcoin sale, the timing suggests a potential correlation in the company’s heightened awareness of risks within the digital asset space.

This move by Iore reflects a wider trend observed among some Japanese companies. Other firms, such as enish and Convano, have also sold Bitcoin holdings earlier in the year. Iore’s strategy appears to be a reallocation of capital, shifting focus from cryptocurrency assets towards the burgeoning field of artificial intelligence infrastructure.

The company’s book value for its Bitcoin holdings as of September 30th was 2.085 billion JPY. The estimated recovery value from the sale is 1.831 billion JPY, resulting in an estimated loss of 254 million JPY. This represents an estimated recovery of approximately 12.11 million JPY per Bitcoin, compared to a book value of 13.79 million JPY per Bitcoin, indicating a difference of about 12%. The exact amount of recovered funds and the final loss will be subject to fluctuations in Bitcoin’s market price.

Iore’s original plan for AI data center investment was 2 billion JPY, which was revised to 2.6 billion JPY. Similarly, the original digital asset purchase plan was 8.49 billion JPY, revised to 7.89 billion JPY. The company also anticipates raising 7.87 billion JPY from future stock acquisition rights, with a planned digital asset purchase of 6.201 billion JPY using these future funds.

It is important to note that the specific overseas exchange that experienced the security incident was not identified by Iore or its lending service. The company’s decision is presented as a strategic reallocation driven by evolving risk perceptions and a focus on AI growth, rather than a complete exit from all digital assets.

Why This Matters

The materials describe a narrow update: Japanese listed company Iore announced on October 30th that its board of directors resolved to sell all 151. The exact amount of recovered funds and the final loss will vary with Bitcoin price fluctuations.

Broader Context

Source materials place the factual news in this context: Japanese listed company Iore (eole, code 2334) announced on October 30th that its board of directors resolved to sell all 151.21 Bitcoin holdings.