DigiAsia Corp, the Indonesian fintech company, saw its shares nearly double in value after declaring plans to raise a whopping $100 million for its inaugural Bitcoin purchase. The firm, listed on Nasdaq and headquartered in Jakarta, announced on May 19 that its board of directors had given the green light for the establishment of a Bitcoin “treasury reserve”. The company also committed to allocating up to 50% of its net profits to support the acquisition of Bitcoin.
In addition to this, DigiAsia disclosed that it is actively considering a capital increase of up to $100 million to bolster its Bitcoin reserves. The fintech firm expressed its intentions to generate revenue from its holdings through methods like lending and staking. The company has reportedly begun talks with regulated partners concerning yield strategies and management of its proposed Bitcoin investments. DigiAsia is also contemplating issuing convertible notes or crypto finance instruments related to its intended Bitcoin collection.
Following the announcement of its Bitcoin strategy, DigiAsia Corp’s shares (FAAS) ended the trading day of May 19 with a substantial gain of 91%, closing at 36 cents, according to Google Finance data. However, post-trading, the firm’s stock experienced a 22% decline, dropping to 28 cents. Nonetheless, DigiAsia’s shares have plummeted almost 53% this year, with a peak value of just under $12 in March 2024.
In its financial report disclosed on April 1, DigiAsia revealed that its revenues had increased by 36% year-on-year, reaching $101 million in 2024. The company forecasted a growth of 24% in 2025, with an expected revenue of $125 million and pre-tax earnings of $12 million.
The trend of corporations incorporating Bitcoin into their business portfolios is growing, following the path laid by Michael Saylor’s Strategy, formerly MicroStrategy, which boasts the most significant Bitcoin holdings of any public company at 576,230 BTC, valued at approximately $60.9 billion.
On May 7, Strive Asset Management announced its transformation into a Bitcoin treasury company. Video game retailer GameStop Corporation (GME) completed a convertible debt offering on April 1 that successfully raised $1.5 billion, with a portion of the proceeds designated for Bitcoin purchases. According to Bitbo data, corporate Bitcoin treasuries collectively hold over three million Bitcoins, valued at over $300 billion.
Adam Back, co-founder and CEO of Blockstream, predicted that companies with Bitcoin-centric treasuries are propelling global adoption and could potentially propel Bitcoin’s market capitalization to hit $200 trillion within the next decade. As of now, Bitcoin’s market cap stands at around $2 trillion, with each Bitcoin trading at $105,642, marking a 2% increase over the previous day, according to CoinGecko.
