Indonesia’s DigiAsia shares pop 90% on plan to raise $100M to buy Bitcoin

Shares successful the Indonesian fintech steadfast DigiAsia Corp astir doubled aft the institution said it plans to rise $100 cardinal to effect its archetypal of galore Bitcoin buys.

The Jakarta-based Nasdaq-listed institution said connected May 19 that its committee of directors approved creating a Bitcoin (BTC) “treasury reserve” and it was “committing up to 50% of immoderate nett profits generated to money the acquisition of BTC.”

DigiAsia said it was besides “actively exploring a superior rise of up to US$100 million” to kickstart its Bitcoin holdings and would look to gain output connected its holdings done means similar lending and staking.

DigiAsia said it had “initiated discussions with regulated partners” connected output strategies and managing its planned Bitcoin holdings. The institution added that it was besides assessing whether to connection convertible notes oregon crypto concern instruments linked to its planned Bitcoin haul. 

DigiAsia stocks detonate connected Bitcoin plans

Shares successful DigiAsia Corp (FAAS) closed May 19 trading astatine a summation of conscionable implicit 91% astatine 36 cents aft the company’s Bitcoin announcement, according to Google Finance.

DigiAsia’s Bitcoin program has seen its banal terms emergence implicit 90% successful the regular trading session. Source: Google Finance

However, aft the bell, DigiAsia banal dropped 22% to 28 cents. The company’s shares are down astir 53% truthful acold this year, having peaked astatine conscionable nether $12 successful March 2024. 

In a fiscal update connected April 1, DigiAsia reported its revenues grew 36% year-on-year to $101 cardinal successful 2024. It projected maturation of 24% to $125 cardinal successful 2025, on with net earlier involvement and taxes of $12 million.

A increasing fig of companies are adding Bitcoin to their firm holdings, pursuing its popularization by Michael Saylor’s Strategy, formerly MicroStrategy, which has the largest Bitcoin holdings of immoderate nationalist institution astatine 576,230 BTC, worthy astir $60.9 billion.

Strive Asset Management announced connected May 7 that it’s going to modulation into a Bitcoin treasury company, and video crippled retailer GameStop Corporation (GME) finished a convertible indebtedness offering on April 1 that raised $1.5 billion, with immoderate proceeds earmarked for buying Bitcoin. 

Related: Metaplanet scoops 1,004 Bitcoin successful 2nd-biggest bargain ever

Corporate Bitcoin treasuries collectively clasp implicit 3 cardinal successful Bitcoin, worthy implicit $300 billion, according to Bitbo data.

Blockstream co-founder and CEO Adam Back predicted that firms with Bitcoin-focused treasuries are driving planetary adoption and could propulsion Bitcoin’s marketplace headdress deed $200 trillion successful the coming decade. 

Bitcoin’s marketplace headdress is presently sitting astatine astir $2 trillion, with BTC changing hands astatine $105,642, up 2% successful the past day, according to CoinGecko. 

Magazine: Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review