DigiAsia Corp is gearing up to raise as much as $100 million to establish a bitcoin treasury reserve (BTC), joining a growing number of publicly traded firms diversifying their portfolios with bitcoin.
The announcement made on Monday, which outlined intentions rather than concrete actions, resulted in DigiAsia’s shares surging 91% in regular trading to 36 cents. However, they later dropped 22% in after-hours trading. Despite this volatility, the stock has still decreased over 50% year-to-date.
Key Points:
- DigiAsia aims to invest up to $100 million to create a bitcoin treasury reserve.
- The company plans to allocate 50% of future net profits towards bitcoin purchases.
- It is also exploring strategies for generating yields on its bitcoin investments, which include regulated institutional lending and staking.
“We believe bitcoin represents a compelling long-term investment and a foundational layer for modern treasury diversification,” said Prashant Gokarn, Co-CEO of DigiAsia.
Translation: Creemos que el bitcoin representa una inversión atractiva a largo plazo y una capa fundamental para la diversificación moderna del tesorería.
Additionally, DigiAsia is considering financing options like convertible notes and crypto-linked instruments to support this initiative. In an April update, the company reported $101 million in revenue for 2024, projecting $12 million in earnings before interest and taxes for the current year. Whether DigiAsia proceeds with its bitcoin purchases remains uncertain, but the announcement has already given it a short-term boost on Wall Street.
