Alibaba's Jack Ma-Backed Firm Invests $44 Million In Ethereum For Strategic Reserve

Benzinga
2025.09.03 09:34
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Jack Ma-backed Yunfeng Financial Group has invested $44 million in Ethereum as part of its strategic reserve, acquiring 10,000 ETH tokens. This investment aims to support real-world asset tokenization and aligns with Hong Kong's push to become a digital asset hub. The move comes amid rising cryptocurrency prices, with Ethereum up 70% year-over-year. Yunfeng, primarily an insurance company, reported HK$2.8 billion in revenue last year and is 29.85% owned by Alibaba's Jack Ma.

Jack Ma-backed Yunfeng Financial Group has invested $44 million in Ethereum ETH/USD as part of its strategic reserve assets, according to an exchange filing Tuesday.

Yunfeng Invests in Ethereum Infrastructure

The Hong Kong-listed company acquired 10,000 ETH tokens to support real-world asset tokenization activities.

Yunfeng stated the Ethereum investment would provide “key infrastructure support” for tokenization services and potential applications within its insurance operations. The move aligns with Hong Kong’s regulatory push to establish the city as a digital asset hub.

Market Context and Institutional Adoption

The investment coincides with rising cryptocurrency prices, with Ethereum gaining 70% since last year and Bitcoin BTC/USD trading nearly 90% higher year-over-year.

Wall Street strategist Tom Lee, Chairman of BitMine Immersion Technologies Inc. BMNR, has aggressively promoted Ethereum treasury strategies, comparing ETH to the 1971 gold standard abandonment.

BitMine leads Ethereum corporate adoption with $7.59 billion in ETH reserves, targeting 5% of the circulating supply. Treasury companies have acquired 2.6% of Ethereum’s supply since June, while Standard Chartered forecasts that ETH will reach $7,500 by year-end, driven by institutional accumulation.

Company Performance and Ownership Structure

Hong Kong-headquartered Yunfeng generates most revenue from the insurance business, reporting HK$2.8 billion ($359 million) in revenue last year with HK$471 million ($60.35 million) net profit, according to the South China Morning Post. The company is 29.85% owned by Alibaba Group Holding Ltd. BABA founder Jack Ma and 70.15% by Chairman Yu Feng.

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