- DigiAsia will invest half of its profits into Bitcoin and employ instruments like convertible debt and crypto-based products to build its BTC reserve.
- DigiAsia joins firms like Strategy and Japan’s Metaplanet in expanding its Bitcoin holdings, and its stock price shot 91% on Monday.
DigiAsia, a fintech provider in Jakarta, has laid out its plans to acquire Bitcoin by using both its profits and capital raised in the market. After gaining approval from its board, the company is now creating a Bitcoin reserve to help support its operations in developing nations.
DigiAsia Announces $100M Bitcoin Buy
In a statement dated Monday, DigiAsia revealed they intend to split every second half of their profits into Bitcoin purchases. The company aims to raise up to $100 million by using various instruments such as convertible debt, deals involving stocks, and crypto-based products. They will use the capital to buy Bitcoin and to invent other strategies that might generate income using the asset.
Talks have already begun with regulated partners concerning management of the treasury and possible returns from holding Bitcoin. These steps are being taken as DigiAsia becomes one of several public firms working with digital assets in their accounts.
Once the news was released, the market reacted swiftly. During regular trading on Monday, DigiAsia’s shares on the Nasdaq increased by 91% and closed at $0.3553. Immediately after the market closed, investors seemed less certain, and the company’s shares dropped by about 23%, according to Yahoo Finance. However, the enthusiasm cooled quickly in after-hours trading, with shares retreating by over 23%.
For further context, the company recently unveiled positive financial results, indicating it experienced growth throughout the year. In 2024, DigiAsia earned $101 million, an uptick of 36% compared to the previous year’s revenue. The firm’s revenue is expected to rise by another 24% in 2025.
Corporate Adoption Of BTC Soars, But Legal Action Strikes
Moreover, it’s worth noting that DigiAsia is following the same steps taken by other firms over the last few days. The same day DigiAsia announced its purchase, Strategy announced it is buying 7,390 more BTC for around $765 million with Michael Saylor as the Executive Chairman. Meanwhile, Japan’s Metaplanet bought another 1,004 BTC, giving it a total of 7,800 BTC.
In addition, the spot Bitcoin ETFs are raking in massive inflows with the majority coming from institutional investors. According to Farside UK, the U.S. BTC ETFs saw an inflow of $667.4 million on Monday. Nonetheless, corporate investing in Bitcoin is facing a threat, with Strategy being slapped with a class-action lawsuit on May 16.
The lawsuit, filed by plaintiff Anas Hamza, alleges that Strategy tried to manipulate the masses regarding material facts about its BTC holdings. The plaintiff filed the suit on behalf of stockholders who might have faced losses owing to the company’s alleged misleading communication. This complicates further adoption of BTC by other companies.
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