Indonesian company DigiAsia Corp, whose shares are listed on the Nasdaq, has announced its intention to create a Bitcoin treasury. As part of this project, it plans to raise up to $100 million for its initial purchase of bitcoins, which has led to more than a 90% increase in the company’s stock.
This is reported by Finway
The board of directors of DigiAsia Corp has made the decision to establish a Bitcoin treasury. According to the company’s plans, up to 50% of its net profit will be allocated to the purchase of bitcoins. This move is driven by the growing trend among public companies to diversify their reserves through crypto assets.
“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 adoption of cryptocurrency and reflects our broader commitment to fintech and blockchain innovation,” said co-CEO Prashant Gokarn.
The company also plans to implement various strategies to enhance the profitability of its investments, including lending and staking. Funding for these investments is likely to be conducted through the issuance of convertible bonds, although DigiAsia is still evaluating various options.
DigiAsia’s shares, traded on the Nasdaq, surged by 91%, reaching $0.64 at the time of the announcement regarding the creation of the Bitcoin treasury, but later their price pulled back.
Notably, DigiAsia Corp is not the only company investing in Bitcoin. Other firms are adopting similar business models, such as Strategy (formerly MicroStrategy). At the same time, this approach may carry certain risks, as noted by Bloomberg experts. Recently, it was also reported that Brazilian company Méliuz made a new Bitcoin purchase, positioning itself as the first public company to manage a treasury in Bitcoin in its market.