K Wave Media scraps massive bitcoin treasury plan to redirect $485 million to AI

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K Wave Media scraps massive <a href="https://investment-policy.com/btc-usd/">bitcoin</a> treasury plan to redirect $485 million to AIMarkets

What to know:

  • K Wave Media (KWM) is redirecting up to $485 million from a planned bitcoin treasury strategy into AI infrastructure, including data centers, GPU compute and acquisitions, under an amended deal with Anson Funds.
  • The pivot, which reverses a 2025 plan to use a $500 million facility to buy BTC, triggered a sharp market backlash, with K Wave shares falling 24 percent on Monday and sliding further in premarket trading on Tuesday.
  • The move aligns K Wave—soon to be rebranded as Talivar Technologies—with a broader shift by bitcoin miners toward AI and high-performance computing, as mining costs outstrip bitcoin prices while AI infrastructure contracts offer far higher margins and steadier revenue.

Bitcoin miners are increasingly using artificial intelligence technology to boost their profits, and some companies that manage digital assets are starting to do the same.

K Wave Media, a Korean media and entertainment company traded on the Nasdaq, announced Monday it’s shifting up to $485 million in funds. Originally intended for investing in Bitcoin, the money will now be used to build artificial intelligence infrastructure.

Thanks to a revised deal with Anson Funds, investment will be directed towards data centers, processing power for artificial intelligence, and companies involved in all stages of the AI industry.

K Wave launched a $500 million fund in June 2025 specifically to purchase bitcoin. This move was intended to improve the company’s position in financial markets, as announcements about bitcoin holdings were proving more effective at boosting stock prices than the company’s actual performance.

Less than a year later, that thesis has been retired in favor of a sector with newer momentum.

Investors reacted negatively to the company’s change in direction. K Wave stock fell 24% on Monday and continued to drop, down another 4% in early trading on Tuesday.

CEO Ted Kim explained the company’s new direction is aimed at becoming a key player in the fast-expanding AI infrastructure market. They plan to develop a robust and expandable platform covering computing and supporting technologies.

The company plans to change its name to Talivar Technologies, but this is still waiting for approval from shareholders at their meeting in early July.

The shift fits a pattern that has been quietly building for months.

In March, CoinDesk reported that publicly traded bitcoin mining companies were rapidly shifting towards artificial intelligence and high-performance computing. To fund this change, they’ve signed over $70 billion in contracts and sold off more than 15,000 BTC from their holdings. For example, Core Scientific sold approximately 1,900 BTC worth $175 million in January, Bitdeer completely emptied its bitcoin reserves in February, and Riot Platforms sold 1,818 BTC valued at $162 million in December.

Bitcoin miners faced difficulties because the average cost to produce a single bitcoin reached around $79,995 in late 2025. However, for much of 2026, the price of bitcoin stayed below that production cost.

Deals to build the underlying technology for artificial intelligence are highly profitable, with companies expecting to earn over 85% on each contract and see consistent revenue for several years.

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2026-05-05 16:14