Davis Commodities Allocates 40% of USD 30 Million to Bitcoin Reserves

Davis Commodities Limited, a Singapore-based agricultural commodity trader listed on Nasdaq, has announced a strategic capital allocation plan following its recent USD 30 million financing round. The company plans to allocate 40% of the funds, amounting to USD 12 million, to incrementally build its Bitcoin reserves. This initiative will commence with an initial investment of USD 4.5 million, demonstrating the firm's dedication to diversifying its asset base through digital currencies.

In addition to its Bitcoin reserves, Davis Commodities is directing 50% of the capital, or USD 15 million, towards the tokenization of real-world agricultural assets (RWA). This focus includes bulk commodities such as sugar and rice, with the goal of enhancing liquidity and transparency in commodity trading. The company anticipates an annual revenue increase of USD 50 million within a two-year period as a result of this innovative approach.

The remaining 10% of the financing, equivalent to USD 3 million, will be invested in bolstering the company’s digital infrastructure and cybersecurity frameworks. This investment aims to ensure robust protection against emerging threats, reflecting Davis Commodities’ forward-looking vision in integrating blockchain technology with traditional agricultural markets.