DigiAsia Corp Shares Surge 10% on $100 Million Bitcoin Investment Plan

DigiAsia Corp, a fintech company listed on the Nasdaq, has announced its intention to raise up to $100 million to invest in Bitcoin. This move is part of the company's strategy to diversify its corporate treasury by allocating up to 50% of its future net profits toward Bitcoin purchases. The company's board has approved this plan, which aims to establish a robust Bitcoin treasury reserve. This capital raise will not only fund the initial Bitcoin purchases but also support the company's exploration of yield-generating strategies on its Bitcoin holdings, including institutional lending and staking through regulated partners.

The announcement has sparked significant interest in the market, with the company's shares experiencing a notable increase in value. DigiAsia's decision to invest in Bitcoin reflects a growing trend among corporations to incorporate cryptocurrencies into their financial strategies, seeking to capitalize on the potential long-term benefits of digital assets. The company's proactive approach to integrating Bitcoin into its treasury management underscores its commitment to innovation and forward-thinking financial practices.

DigiAsia Corp is actively exploring various financing methods, such as convertible notes and crypto-linked instruments, to support this initiative. The firm believes that Bitcoin represents a compelling long-term investment and a foundational layer for modern treasury diversification. In an April update, DigiAsia reported $101 million in revenue for 2024, with projected earnings before interest and taxes of $12 million this year. Whether DigiAsia follows through on its Bitcoin purchases remains to be seen, but the signal alone has been enough to give the fintech a short-term boost on Wall Street.