DigiAsia Stock Jumps Over 90% on Plans to Raise $100M for Bitcoin Treasury
Shares of DigiAsia Corp (FAAS), a Singapore-based firm targeting Southeast Asian markets, surged more than 90% following the announcement of its plan to establish a bitcoin treasury reserve funded by up to $100 million.
The company revealed on Monday that it is actively exploring a capital raise to build its bitcoin holdings, aiming to allocate as much as 50% of future net profits toward bitcoin purchases. This move places DigiAsia among an increasing number of publicly traded firms diversifying corporate assets with cryptocurrency.
Although the announcement is preliminary and not a completed transaction, DigiAsia’s shares climbed 91% during regular trading to 36 cents, before easing off 22% in after-hours trading. The stock remains more than 50% lower year-to-date.
DigiAsia also intends to implement yield-generating strategies for its bitcoin reserves, including staking and institutional lending through regulated channels.
“We see bitcoin as a compelling long-term asset and a cornerstone for treasury diversification,” said Co-CEO Prashant Gokarn.
The company is considering various financing methods, such as convertible notes and crypto-linked instruments, to support its bitcoin acquisition plan.
In April, DigiAsia reported $101 million in revenue for 2024 with projected earnings before interest and taxes of $12 million. While the firm’s bitcoin buying plans are still unfolding, investor enthusiasm has given the stock a notable boost.
