Nikolas Sargeant
Shares of Nasdaq-listed DigiAsia Corp skyrocketed by more than 91% on May 19 following the Indonesian fintech company's announcement of plans to establish a Bitcoin treasury reserve. The Jakarta-based firm revealed its board has approved a strategy to allocate up to half of its net profits toward Bitcoin purchases, signaling a significant shift in corporate treasury management.
Trading under the ticker FAAS, DigiAsia's stock closed Monday at $0.36, representing a dramatic single-day gain. However, after-hours trading showed a pullback to $0.28, reflecting the volatility surrounding the announcement. Despite the recent surge, the company's shares remain down nearly 53% year-to-date after reaching highs near $12 in March.
Capital Raise Planned to Accelerate Bitcoin Acquisition
DigiAsia disclosed it is actively pursuing a capital raise of up to $100 million to jumpstart its Bitcoin holdings. The company is also exploring partnerships with regulated entities to develop yield-generating strategies for its planned Bitcoin reserves, including lending and staking opportunities.
Additionally, the fintech firm is considering issuing convertible notes and crypto-linked financial instruments to support its treasury initiative. These moves come after DigiAsia reported strong financial performance, with a 36% increase in annual revenue to $101 million in 2024 and projected revenues of $125 million for 2025.
The company expects to generate earnings before interest and taxes of approximately $12 million in the coming year, providing further resources for its Bitcoin accumulation strategy.
Corporate Bitcoin Treasuries Gain Momentum Globally
DigiAsia joins an expanding list of public companies adding Bitcoin to their balance sheets. This trend, pioneered by Michael Saylor's Strategy (formerly MicroStrategy), which now holds over 576,000 BTC valued at approximately $60.9 billion, continues to gain traction across various sectors.
Other firms, including Strive Asset Management and GameStop, have recently announced similar initiatives. According to data from Bitbo, corporate treasuries collectively hold more than three million BTC, worth over $340 billion.
Strategy recently announced plans to double its capital-raising efforts to $84 billion to acquire additional Bitcoin, including an expanded debt issuance target from $21 billion to $42 billion. During the first quarter of 2025, publicly listed companies grew their Bitcoin holdings by 16.1%, demonstrating sustained institutional confidence in the digital asset despite market fluctuations.
Bitcoin currently trades at $105,642, up 2% in the last 24 hours, with a market capitalization approaching $2 trillion.
