K Wave stock sinks after $485M Bitcoin-to-AI pivot

K Wave Media has redirected up to $485 million from its Bitcoin treasury strategy into artificial intelligence infrastructure

Summary

• K Wave redirected $485M from Bitcoin treasury plans into data centers and GPU compute operations.
• KWM shares fell about 25% Monday after the company announced its Bitcoin-to-AI infrastructure strategy shift.
• The restructuring includes Play Co.’s planned sale and about $48M in debt and liabilities reduction.

The Nasdaq-listed media and entertainment company disclosed the change in a May 4 Form 6-K filing with the U.S. Securities and Exchange Commission.

The capital will now support data center investments, GPU compute and rental operations, and possible acquisitions in AI infrastructure

The funds come from an amended securities purchase agreement with Anson Funds, which had earlier backed the company’s Bitcoin treasury plan.

Bitcoin treasury plan loses priority

The amended deal changes a prior $500 million equity purchase facility. That facility had been designed to support K Wave Media’s Bitcoin treasury strategy, which the company announced in 2025 as part of a wider capital markets shift.

K Wave Media had earlier linked its plans to Korean cultural intellectual property, digital assets and tokenized securities. The latest filing moves the company’s main funding plan away from Bitcoin and toward AI infrastructure, while keeping the focus on a new corporate structure.

Meanwhile, KWM shares fell after the announcement. Latest available market data showed the stock at $0.3071, down 24.75% from the previous close. The stock opened at $0.309, traded between $0.28 and $0.587, and recorded volume of more than 10.2 million shares.

Source: Yahoo FinanceThe drop came as investors weighed the company’s move from a Bitcoin treasury plan to an AI infrastructure strategy

Restructuring targets debt reduction

K Wave Media said its board approved the planned sale of Play Co., Ltd., its largest wholly owned subsidiary, back to the unit’s previous owner. The company expects the sale to remove about $48 million in debt and related contingent liabilities.

The company also said it may rebrand as “Talivar Technologies,” subject to shareholder approval. The vote is expected at its annual meeting in early July 2026. Chief executive Ted Kim said, “This marks a defining inflection point for KWM.”

Crypto treasury trend faces new test

The reversal comes after several public firms adopted crypto treasury plans in 2025. crypto.news reported in October that Asian companies including Top Win, Quantum Solutions and K Wave Media were raising capital to expand Bitcoin positions.

The move also fits a wider shift among crypto-linked firms toward AI infrastructure. crypto.news reported that Bitcoin miner Hut 8 secured $150 million from Coatue in 2024 to build an AI infrastructure platform. K Wave Media is now trying a similar direction through data centers, GPU operations and AI-related acquisitions.