DigiAsia Shares Surge Over 90% on Plans to Build Bitcoin Treasury Reserve
Singapore-based DigiAsia Corp (FAAS), a relatively unknown player focused on Southeast Asian markets, saw its stock price jump more than 90% Monday after announcing plans to establish a bitcoin treasury reserve.
The company revealed intentions to raise up to $100 million to fund bitcoin purchases, joining a growing number of publicly traded firms aiming to diversify their corporate treasuries with crypto assets.
While the announcement highlighted future plans rather than confirmed actions, DigiAsia’s shares climbed 91% during regular trading to 36 cents before easing 22% in after-hours trading. Despite the spike, the stock remains down over 50% for the year.
According to a company press release, DigiAsia’s board has approved a strategy to allocate up to 50% of future net profits toward bitcoin acquisitions. The firm is actively exploring capital-raising options to support this move.
Additionally, DigiAsia plans to implement yield-generating strategies on its bitcoin holdings, including institutional lending and staking through regulated partners.
“Bitcoin represents a compelling long-term investment and a foundational pillar for modern treasury diversification,” said Prashant Gokarn, Co-CEO of DigiAsia.
The company is also considering financing vehicles such as convertible notes and crypto-linked instruments to facilitate the initiative.
In its April update, DigiAsia reported $101 million in revenue for 2024 and projected earnings before interest and taxes of $12 million for this year. Whether DigiAsia will follow through with the bitcoin purchases remains uncertain, but the announcement has already provided a notable boost to the company’s stock on Wall Street.
