Huobi founder Li Lin uses Bitfire to chase 10,000 Bitcoins worth $760 million from Hong Kong investors

Bitfire has agreed to acquire the trading team and operational systems from Li Lin’s Avenir Group in a deal valued at around $1.6 million.

The company aims to raise capital for its Alpha BTC strategy, targeting holdings of more than 10,000 BTC — roughly $760 million — within the next year.

According to CEO Livio Weng, the strategy will rely on derivatives such as options, using Bitcoin or the IBIT ETF as underlying assets. Bitfire represents Li Lin’s latest move in the crypto space in Hong Kong, as he shifts Avenir’s trading unit into Bitfire Group, where he is the largest shareholder.

Bitfire, which focuses on wealth management services, confirmed the agreement to purchase Avenir’s investment team and trading infrastructure for $1.6 million.

Li first rose to prominence through Huobi, the crypto exchange now rebranded as HTX. While mainland China banned crypto trading in 2021, Hong Kong has been positioning itself as a hub for digital assets. In 2022, Li sold a controlling stake in Huobi to Justin Sun for about $1 billion, later turning his focus toward Avenir.

Bitfire brings trading operations to Hong Kong and seeks Bitcoin capital

Following the acquisition, Bitfire plans to attract external funding for a regulated Bitcoin-based asset management product known as Alpha BTC.

Livio Weng stated that the company is aiming to secure investments equivalent to over 10,000 BTC within a year — approximately $760 million based on current estimates.

He noted that demand for such products is strong, as many local companies already hold Bitcoin but lack straightforward ways to generate returns from those assets.

The Alpha BTC strategy is expected to generate profits through derivatives trading, particularly options, with Bitcoin or the IBIT ETF serving as the base asset. The firm is targeting both crypto-native investors and Hong Kong-based corporations.

This approach aligns with market conditions, as Bitfire estimates that at least 40 publicly listed companies in Hong Kong already have Bitcoin on their balance sheets.

The company is therefore focusing on a segment where businesses already own digital assets but are seeking regulated methods to enhance their returns.

Hong Kong advances crypto regulation while the US faces delays

At one of the city’s major Web3 events, regulators and policymakers discussed expanding Hong Kong’s influence in the global crypto industry.

Eric Yip Chee-hang, executive director at the Securities and Futures Commission, said the city is now in a position to think more ambitiously and increase its international presence after establishing a strong local foundation.

He also pointed out that Hong Kong has been gaining global attention at industry conferences due to its regulatory progress.

Earlier this month, authorities issued the first licenses for stablecoin issuers and continue to develop frameworks for crypto trading platforms and custodians.

In contrast, regulatory progress in the United States has been slower. Duncan Chiu Tat-kun, a member of the Legislative Council, said that while there have been advancements, key bills such as the Genius Act and the Clarity Act remain stalled in the Senate.

He explained that disagreements over stablecoin yields between traditional banks and crypto firms are contributing to delays. If these bills are not passed soon, they could be postponed until as late as 2027, slowing broader regulatory development.

Duncan added that although the proposed legislation is well-structured, the current political environment is creating uncertainty for the market. He contrasted this with Hong Kong’s steady and consistent approach to building its digital asset regulatory framework, especially amid shifting regulatory attitudes in the US across different administrations.