DigiAsia Eyes $100M Raise to Launch Bitcoin Treasury Reserve

DigiAsia Corp (NASDAQ: FAAS) is making headlines with plans to raise up to $100 million to establish a bitcoin treasury reserve, aiming to diversify its balance sheet and tap into the long-term potential of BTC. The fintech company’s shares surged 91% to $0.36 following the announcement before pulling back 22% after hours. Despite the spike, the stock remains down over 50% year-to-date.

The company confirmed that its board approved a strategy to allocate up to 50% of future net profits toward bitcoin purchases. It is actively considering a capital raise through methods like convertible notes and crypto-linked instruments to support the initiative. DigiAsia is also exploring yield-generating strategies such as institutional lending and staking via regulated platforms.

Co-CEO Prashant Gokarn described bitcoin as a “compelling long-term investment” and a “foundational layer” for modern treasury management. While no BTC purchases have been made yet, the announcement alone sparked short-term investor optimism.

In its latest financial update, DigiAsia reported $101 million in revenue for 2024 with a projected $12 million in EBIT. If the company follows through, it will join a growing list of public firms integrating digital assets into their financial strategy. DigiAsia’s pivot toward crypto-backed treasury management positions it within a broader trend of fintech innovation and digital asset adoption.

The move reflects increasing interest among corporates in hedging against inflation and traditional asset volatility by embracing bitcoin. Investors will be watching closely to see if the plans materialize and how the capital raise unfolds. For now, DigiAsia’s crypto ambitions have breathed new life into its stock and brand visibility.