The Gulf Energy Development Public Company Limited (SET: GULF) has announced its strategic move to mitigate the risk in cryptocurrency market as Mr. Sarath Ratanavadi, GULF’s Chief Executive Director, personally invested 1.7 billion baht to take over the company’s subsidiary that invests in Binance’s cryptocurrency, BNB Coin (BNB).
On June 16, 2022, the Board of Directors of GULF resolved to approve the disposal of the company’s entire investment in Gulf International Investment Limited (GIIL), the company’s wholly-owned subsidiary which invests in Binance’s cryptocurrency, BNB Coin, to Gulf Holdings (Thailand) Company Limited (GHT), which is a juristic person holding 4.86% equity stake in the company (as of June 16, 2022). The total value of the transaction is approximately USD 50.10 million, which is equal to the company’s cost of investment in GIIL, and therefore has no impact on the company’s operating results or financial statements.
GIIL is the company’s wholly-owned subsidiary which operates as a holding company. Currently, GIIL invests in Binance’s cryptocurrency, BNB Coin (BNB) of which the value at the investment date was USD 50.00 million or approximately THB 1,678.25 million, and does not have any other significant assets.
The decision of the company in disposing of its investment in GIL came after a downfall in the cryptocurrency market as investors are withdrawing from global risk assets amid uptrends of global central banks rate hikes.
Bitcoin is trading at levels not seen since late 2020, currently at $20,613 to one bitcoin. The coin plunged nearly 50% in three months and 55% since the beginning of this year.
Meanwhile, Binance Coin was down nearly 60% this year.
