China Renaissance Capital, the investment bank renowned for orchestrating landmark mergers in China’s internet sector, has officially entered the cryptocurrency arena. The firm’s board has approved a strategic plan to invest $100 million over the next two years to expand its Web3 operations and direct investments in crypto assets.

The announcement triggered a 33% surge in China Renaissance’s stock price at market open. Known for its pivotal role in shaping China’s Web2 landscape through deals like Didi-Kuaidi and Meituan-Dianping mergers, the firm now seeks to position itself in the emerging Web3 financial paradigm.

While positioning this move as a new strategic direction, China Renaissance has maintained crypto sector exposure since 2018 through investments in Circle, Canaan Technology’s Nasdaq IPO, Amber Group, Matrixport, and Bitmain. The firm has provided comprehensive services spanning IPO preparation, M&A advisory, and financing for major crypto enterprises.

The strategic shift follows a turbulent period for China Renaissance, including the 2023 disappearance of founder Bao Fan and subsequent financial struggles that saw 2022 first-half revenue drop 40% year-over-year. Under new leadership since February 2024, the firm has pivoted toward hard technology, industrial upgrading, and globalization – with Web3 emerging as a core focus.

The investment decision appears timed with Hong Kong’s regulatory evolution, as local financial institutions increasingly embrace virtual asset services. China Renaissance’s established expertise in capital operations and deal-making faces new tests in Web3’s decentralized environment, but the firm appears determined to leave its mark on crypto’s next chapter.