Giant Company Listed on Nasdaq Prepares to Buy 100 Million Dollars Worth of Bitcoin! Here are the Details

The Singapore-based fintech company DigiAsia Corp announced that it plans to raise up to $100 million to create a Bitcoin treasury reserve. Following this news, the company's shares gained over 90% during normal trading hours on Monday.

DigiAsia, Listed on Nasdaq, Plans a 100 Million Dollar Bitcoin Treasury Reserve Strategy

The company announced in a press release that the board of directors has approved a strategy to allocate 50% of its future net profit for Bitcoin (BTC) purchases.

Although BTC has not been purchased yet, DigiAsia emphasized that it is "actively exploring" a capital increase to finance this initiative, expressing its intention to join the number of public companies that integrate Bitcoin into their balance sheets.

DigiAsia's shares rose to $0.36 with a 91% increase in Monday's trading, but lost 22% in value outside of trading hours. Despite this increase, the stock has lost over 50% in value since the beginning of the year.

"We believe that Bitcoin is an attractive long-term investment and a key element in modern treasury diversification."

— Prashant Gokarn, Co-CEO of DigiAsia Corp.

The company also added that it is evaluating various financing mechanisms, including convertible bonds and crypto-linked instruments, to support its Bitcoin strategy.

Additionally, it plans to generate returns from its assets through staking via corporate loans and regulated partners.

DigiAsia reported in an update published in April that it forecasts a revenue of 101 million dollars and an EBIT of 12 million dollars for the year 2024, before interest and taxes.

It is still unclear whether the company will successfully raise funds and implement the Bitcoin purchase strategy, but this announcement has clearly attracted investors' interest.

DigiAsia has joined companies like MicroStrategy and Metaplanet that position Bitcoin as a long-term institutional asset.