DigiAsia Corp (FAAS) plans to lift as much as $100 million to seed a bitcoin treasury reserve (BTC), becoming a member of a rising listing of publicly traded firms trying to diversify their company stability sheets with bitcoin.
The announcement on Monday (which emphasised plans somewhat than executed actions) helped push DigiAsia’s shares up 91% throughout common buying and selling to 36 cents, earlier than pulling again 22% after hours. The inventory remains to be down greater than 50% year-to-date.
The corporate stated its board had accepted a method to allocate as much as 50% of future web income towards BTC purchases and was “actively exploring” a capital increase of as much as $100 million, in keeping with a press launch.
It additionally plans to pursue yield-generating methods on its bitcoin holdings, together with institutional lending and staking by regulated companions.
“We consider bitcoin represents a compelling long-term funding and a foundational layer for contemporary treasury diversification,” stated Prashant Gokarn, Co-CEO of DigiAsia, within the launch.
The agency added that it was evaluating financing strategies reminiscent of convertible notes and crypto-linked devices to assist the initiative.
In an April replace, DigiAsia reported $101 million in income for 2024, with projected earnings earlier than curiosity and taxes of $12 million this 12 months. Whether or not DigiAsia follows by on its BTC purchases stays to be seen. However the sign alone has been sufficient to present the fintech a short-term enhance on Wall Avenue.
