Indonesia’s DigiAsia Corp has announced plans to raise $100 million to initiate its Bitcoin investment strategy. The Jakarta-based fintech firm, listed on Nasdaq, said on May 19 that its board has approved the creation of a Bitcoin treasury reserve, committing up to 50% of its net profits to acquire Bitcoin.
This announcement caused a dramatic spike in DigiAsia’s stock price, which concluded the day up 91% at 36 cents. However, the stock experienced a 22% drop after hours, settling at 28 cents. Despite this volatility, the company’s shares have shown a remarkable response to its Bitcoin strategy, according to Google Finance.
Source: Google Finance
DigiAsia’s initiative is part of a growing trend among corporations to incorporate Bitcoin into their financial strategies. The company is exploring various avenues to generate yield from its Bitcoin holdings, including lending and staking, and is in discussions with regulated partners to manage these assets effectively. Additionally, DigiAsia is considering offering convertible notes or crypto finance instruments linked to its Bitcoin acquisitions.
The company’s financial performance has been on an upward trajectory, with revenues growing 36% year-on-year to $101 million in 2024. Projections for 2025 estimate revenues of $125 million and earnings before interest and taxes of $12 million.
DigiAsia’s decision is consistent with a larger corporate trend of integrating cryptocurrency into treasury management. Notably, companies like Strategy (formerly MicroStrategy) have made significant Bitcoin acquisitions, with Strategy holding 478,740 BTC valued at approximately $45.8 billion.
As Bitcoin continues to gain acceptance in the corporate world, DigiAsia’s strategic investment marks a significant step in the evolving financial landscape.
