Indonesian company DigiAsia Corp, whose shares are listed on the Nasdaq, has announced the establishment of a Bitcoin treasury. As part of this initiative, the company plans to raise up to $100 million for its initial purchase of the crypto asset. Following this announcement, DigiAsia’s shares surged by over 90%.
This is reported by Business • Media
DigiAsia’s Plans for the Bitcoin Treasury
The board of directors of DigiAsia Corp has approved a plan to create a Bitcoin treasury, reflecting the growing trend among public companies to diversify their reserves using crypto assets. The company is also committed to spending up to 50% of its net profit on purchasing Bitcoins.
“We believe that Bitcoin represents an attractive long-term investment and a fundamental level for modern treasury diversification. This move positions DigiAsia at the forefront of institutional cryptocurrency adoption and reflects our broader commitment to fintech and blockchain innovation,” said co-CEO Prashant Gokarn.
The company plans to implement a range of strategies aimed at enhancing the profitability of its investments, including lending and staking. To finance these investments, DigiAsia is likely to issue convertible bonds, although the company is still evaluating various options.
Stock Growth and Investment Risks
In light of the announcement regarding the creation of the Bitcoin treasury, DigiAsia’s shares rose by 91%, reaching $0.64, but have since retreated. It is known that DigiAsia is not the only company investing in Bitcoin, and they all adhere to similar business models, akin to Strategy (formerly MicroStrategy). However, such an approach may come with certain risks, as warned by Bloomberg analysts.
It is worth noting that recently, Brazilian company Méliuz also announced a new Bitcoin purchase, positioning itself as the first public company managing a treasury in cryptocurrency in its market.