KUALA LUMPUR (Jan 10): Bintai Kinden Corp Bhd is venturing in digital assets as part of its treasury management and for the longer-term needs in its business expansion. 

In a statement on Tuesday, mechanical and electrical (M&E) engineering services specialist said the venture into digital assets is via its unit Bintai Trading Sdn Bhd (BTSB). 

The company said BTSB has an account with a digital currency exchange licensed by the Securities Commission Malaysia. 

Bintai Kinden executive director Azri Azerai said that this was an opportune time to venture into digital assets as values across the board has fallen, especially among the main ones such as Bitcoin and Ethereum. 

“We will devote a portion of our free cash flow for digital assets and will take a dollar-cost averaging approach when buying into them.” 

“This is also part of our treasury management as we need to ensure cash flow to manage our daily operations while taking into consideration our longer term needs and strategies involving the M&E business. 

“We will continue to seek opportunities in Malaysia and neighbouring countries to expand,” he said. 

Citing Coinbase Global Inc.’s 2023 Crypto Market Outlook published in December 2022, Bintai Kinden said a flight to quality among institutional investors; creative destruction that will eventually lead to new opportunities and; foundational reforms that usher in the next cycle, are the key themes for the year. 

The company said the Coinbase report noted that the coefficients that led to the high, positive correlation between Bitcoin and Ethereum versus US stocks have trended lower since May 2022 and expects investors to select higher-quality cryptocurrencies based on factors such as sustainable tokenomics, maturity of ecosystems and relative market liquidity. 

At the midday break on Tuesday, Bintai Kinden rose 5.56% or 0.5 sen to 9.5 sen with 433,700 shares traded. The group had a market capitlaisation of RM73.55 million.