Nasdaq-Listed DigiAsia Plans to Raise $100M for Bitcoin Buys
DigiAsia Corp (FAAS) has announced plans to raise up to $100 million to establish a bitcoin treasury reserve (BTC), joining a growing number of publicly traded companies seeking to diversify their corporate balance sheets with bitcoin.
The announcement on Monday led to a 91% increase in DigiAsia’s shares during regular trading, reaching 36 cents, although they later pulled back by 22% after hours. Despite this fluctuation, the stock remains down more than 50% year-to-date.
According to a press release, the company’s board has approved a strategy to allocate up to 50% of future net profits toward BTC purchases and is actively considering a capital raise of up to $100 million. DigiAsia also intends to explore yield-generating strategies with its bitcoin holdings, such as institutional lending and staking through regulated partners.
Prashant Gokarn, Co-CEO of DigiAsia, stated, “We believe bitcoin represents a compelling long-term investment and a foundational layer for modern treasury diversification.”
The company is exploring financing options like convertible notes and crypto-linked instruments to support this initiative. In an April update, DigiAsia reported revenue of $101 million for 2024, with projected earnings before interest and taxes of $12 million for the current year.
It remains to be seen whether DigiAsia will follow through on its BTC purchases, but just the announcement alone has sparked interest and boosted its performance on Wall Street in the short term.
