Key Takeaways
- DigiAsia plans to raise $100 million to buy Bitcoin.
- The firm will allocate 50% of net profits to Bitcoin.
- DigiAsia's stock surged 91% following the announcement.
Indonesian fintech firm DigiAsia has announced plans to raise up to $100 million to purchase Bitcoin, sending its stock price soaring 91% on Monday before falling 23% in after-hours trading.
Building a Bitcoin treasury
The Nasdaq-listed company said it would use the capital to build a Bitcoin treasury reserve and pursue Bitcoin-based yield strategies.
It also committed to allocating 50% of all future net profits toward Bitcoin acquisitions.
Strategic partnerships and funding
The firm stated:
DigiAsia has initiated discussions with regulated partners on BTC yield strategies and the management of the BTC treasury reserve.
To fund its Bitcoin initiative, the company is considering equity-linked offerings, convertible notes, and other structured finance instruments.
Stock volatility and financial performance
The announcement comes amid a volatile period for DigiAsia’s stock, which has fallen 96% over the past year—from $9.60 in May 2024 to $0.3553 on Monday.
Despite this, the company reported $101 million in revenue for 2024, a 36% year-over-year increase, and forecasts 24% revenue growth in 2025.
DigiAsia’s market position
Based in Jakarta, DigiAsia provides fintech-as-a-service products, including cashless payment and digital wallet solutions in emerging markets.
Industry context
The move places DigiAsia alongside firms like Strategy and Metaplanet, which continue to accumulate Bitcoin.
Strategy, led by Michael Saylor, disclosed a purchase of 7,390 BTC for $764.9 million on Monday, raising its total holdings to 576,230 BTC.
Metaplanet, a Japan-based firm, added 1,004 BTC, pushing its total to 7,800 BTC.
