Analysis of Deylin Holdings (01709.HK): Virtual Asset Catalyst Ignites Market, but Risks Loom Large

This analysis is based on reports from AASTOCKS [1] and Eastmoney [2], published on January 7, 2026. Deylin Holdings has become a market focus after receiving approval from the Hong Kong Securities and Futures Commission (SFC) to provide virtual asset trading services. Its share price surged over 50% between December 31, 2025, and January 2, 2026, but subsequently pulled back.

is the core catalyst for this share price surge. Deylin Securities, a subsidiary in which Deylin Holdings holds a 70% stake, has received conditional approval from the SFC to provide virtual asset trading services under a consolidated account arrangement [3][4]. After the news was officially confirmed on December 29, 2025, the market reacted sharply: the share price soared nearly 45% on December 31, 2025, and rose over 10% further to HK$2.26 on January 2, 2026. However, on January 7, 2026, the share price pulled back some gains, falling 5.189% to HK$2.01 [1].

In addition to the virtual asset trading license, progress in the company’s Bitcoin mining operations has also provided additional momentum for the share price. According to reports, the company has completed the acquisition of 9,148 Bitcoin mining machines. The total Bitcoin production in December 2025 was 25.2107 coins, with an average daily output of approximately 0.8404 coins. The company expects its full-year Bitcoin production in 2026 to be between 600-700 coins [5]. The concept of this “digital gold”, coupled with the overall positive trend in the cryptocurrency market, has attracted the attention of some speculative capital.

From a technical perspective, Deylin Holdings formed a “golden cross” pattern on January 6, 2026 — the 10-day moving average crossed above the 20-day moving average, with a 10-day gain of as much as 42% [6]. Meanwhile, DA Wolf Investments I Limited increased its holdings by 1 million ordinary shares on December 29, 2025, at an average price of HK$1.87, raising its shareholding ratio to approximately 28.1% [7]. The institutional share increase has provided some support for the share price, but it should be noted that the average cost of the increase is HK$1.87, and the current share price is already above this level.

The case of Deylin Holdings reveals a significant divergence between “concept speculation” and “fundamentals” in the Hong Kong stock market. The company’s story of transforming from traditional securities business to the virtual asset sector is indeed imaginative, but there are several key issues worthy of deep consideration:

First,

; it has only received “conditional approval” so far, and the timeline for the official launch of the service is unclear. This means that market speculation is more based on expectations rather than actual performance contributions. Second, ; whether the annual production forecast of 600-700 coins can be achieved under the current Bitcoin price and mining difficulty, and whether it can be converted into sustainable profit growth, are both questionable.

In-depth analysis shows that the market’s suspicion of Deylin Holdings being a “suckers’ stock” is not groundless. In the 5 years since its listing, the company has raised a total of HK$3.445 billion through share placings. It placed HK$653 million worth of shares in August 2025 and HK$973 million in October 2025, with the share price plummeting by an average of over 10% after each placing [2]. This frequent “bloodsucking” behavior has seriously harmed the interests of minority shareholders, which also explains why the market is highly skeptical of the company.

Even more worrying is the

. According to the 2025 interim report, 96% of the HK$202 million net profit came from one-time “other gains”, while the main business revenue was only HK$118 million. The net profit margin of 170.8% severely deviates from industry norms [2]. This profit structure is obviously not sustainable, and once the one-time gains fade, performance may drop sharply.

Risk Type	Risk Level	Details
Stock Connect Delisting Risk	🔴 Extremely High	Market value is approaching the HK$4 billion threshold, almost certain to be delisted [2]
Suspicion of Financial Fraud	🔴 High	Net profit source is questionable, main business profitability is doubtful [2]
“Suckers’ Stock” Characteristics	🔴 High	Frequent share placings to raise funds, historical behavior shows disregard for shareholder interests
Liquidity Risk	🟡 Medium-High	Small-cap stock with high share price volatility and unstable trading volume
Valuation Bubble	🟡 Medium	Heavy speculation on Bitcoin concept, insufficient performance support
Transformation Implementation Risk	🟡 Medium	Virtual asset trading service has not yet been officially launched

is the most pressing systemic risk at present. According to Eastmoney’s analysis, Deylin Holdings has an extremely high 100% probability of being removed from the Stock Connect program in the regular adjustment in September 2026 [2]. The company’s current market value is approximately HK$4.31 billion, approaching the HK$4 billion threshold. If the share price falls below HK$2.08, the delisting condition will be triggered, leading to a liquidity crunch and forming a vicious cycle of “breaking the threshold → being removed from Stock Connect → further share price decline”.

. Deylin Holdings’ historical performance shows that the company’s management tends to “suck blood” from the market through frequent share placings, rather than committing to creating long-term value for shareholders. For investors unfamiliar with the Hong Kong stock market ecosystem, this type of stock may cause devastating losses.

Despite numerous risks, the following opportunity windows exist in the short term:

may become a major positive catalyst. If the service is successfully launched and generates considerable revenue, it may support the current valuation. However, this requires time to verify, and there are regulatory policy uncertainties.

will directly affect the profit contribution of the mining business. If the Bitcoin price continues to rise, revenue and profit may still exceed expectations even if production falls short of forecasts.

. After the formation of the “golden cross” pattern, it may attract technical investors to enter the market in the short term, forming a short-term technical rebound. However, the height of this rebound is limited, and it may soon be pulled back by fundamental factors.

Deylin Holdings (01709.HK) has become a market focus due to the approval of its virtual asset trading license and progress in Bitcoin mining operations, with its share price surging sharply in the short term before pulling back. The current share price is HK$2.01, with a market value of approximately HK$4.31 billion. Technically, it has formed a “golden cross” pattern, and institutions such as DA Wolf Investments have continued to increase their holdings.

However, investors must clearly recognize that

. The risk of being removed from Stock Connect is almost certain (100% delisting probability), the financial data is abnormal (a net profit margin of 170.8% severely deviates from industry norms), frequent share placings have harmed shareholder interests, and the virtual asset trading service has not yet been officially launched. Its history of a single-month drop of over 50% in September indicates that the stock is highly volatile.

: The current market value is approaching the HK$4 billion threshold for Stock Connect inclusion. Falling below HK$2.08 will trigger the delisting risk. The company is suitable for high-risk aggressive investors for speculative trading, but strict stop-loss settings are required. For most investors, it is recommended to avoid the stock or participate only with an extremely small position.

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[0] Jinling Analysis Database

[1] AASTOCKS - Deylin Holdings’ Share Price Drops 5.189%

[2] Eastmoney - Analysis of Deylin Holdings’ Risk of Being Removed from Stock Connect

[3] Investing.com - Deylin Holdings’ Subsidiary Approved by SFC to Upgrade to Type 1 License

[4] AASTOCKS - Deylin Holdings’ Subsidiary Approved by SFC to Upgrade to Type 1 License

[5] AASTOCKS - Deylin Holdings Forecasts 600-700 Bitcoin Production in 2026

[6] AASTOCKS - Deylin Holdings Forms Golden Cross Technical Pattern

[7] Futu News - DA Wolf Investments Increases Holdings in Deylin Holdings

[8] Futu News - Hong Kong Stocks Close on Dec 31