Nasdaq-listed K Wave Media has exited its Bitcoin treasury strategy after selling its remaining 88 BTC on May 6 to repay $6 million in debt, according to a June 30 filing with the U.S. Securities and Exchange Commission. The transaction reduced the company’s Bitcoin holdings to zero, closing out a strategy that had once aimed to build a much larger reserve.
The sale marks a sharp reversal from K Wave’s earlier plans. In 2025, the company outlined a goal of accumulating 10,000 BTC as quickly as possible. To support that effort, K Wave secured up to $1 billion in financing through separate agreements with Anson Funds and Bitcoin Strategic Reserve. At the time, it said 80% of certain financing proceeds would be allocated to Bitcoin purchases, and it completed an initial acquisition of 88 BTC in July 2025.
Capital Reallocated to AI Infrastructure
K Wave later changed course and redirected its funding priorities. The company said it plans to invest up to $485 million of its remaining financing capacity into AI infrastructure projects. According to the filing, that strategy includes data centers, GPU clusters, AI cloud platforms, cooling systems, power infrastructure, and related technology assets.
Beyond the AI pivot, K Wave also plans to sell its Play Company subsidiary, while shareholders are expected to consider disposing of the company’s stake in Solaire. After the AI-focused strategy was announced, K Wave shares fell about 25%, suggesting investors responded cautiously to the abrupt shift in direction.
Nasdaq Compliance Problems Add Pressure
The strategic change comes as K Wave continues to deal with Nasdaq compliance challenges. The company said the exchange notified it in January that it had failed to meet the $1 minimum bid price requirement. In June, Nasdaq issued another notice after K Wave’s market value of publicly held shares dropped below the required $15 million threshold.
Although K Wave said its Bitcoin treasury strategy has been paused rather than fully abandoned, the company currently holds no Bitcoin following the May 6 sale. For a public company that had previously promoted an aggressive Bitcoin accumulation plan, the latest filing highlights how debt obligations, financing constraints, and changing business priorities can quickly reshape a crypto treasury strategy.