K Wave Redirects $485M from Bitcoin to AI, Shares Drop 25%

K Wave Media Ltd., a Nasdaq-listed South Korean media and entertainment company, disclosed on Monday that it is redirecting up to $485 million from a planned bitcoin treasury strategy toward artificial intelligence infrastructure, prompting its shares to plunge nearly 25 percent.

The pivot, detailed in a Form 6-K filing with the U.S. Securities and Exchange Commission, amends a $500 million securities purchase agreement with Anson Funds that was originally established in June 2025 to acquire bitcoin. The funds will now support investments in data centers, graphics processing unit compute operations, and potential acquisitions across the AI sector. K Wave's board also approved the sale of its largest wholly owned subsidiary, Play Co. Ltd., back to its previous owner, a move expected to eliminate about $48 million in debt and related liabilities.

Chief Executive Ted Kim described the changes as "a defining inflection point for KWM." He added, "By exiting our legacy business, eliminating nearly all liabilities, and securing significant access to capital, we are positioning the company to become a meaningful participant in the rapidly growing AI infrastructure sector. Our goal is to...