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DigiAsia Corp, a Jakarta-based Nasdaq-listed fintech firm, announced a significant shift in its strategy, aiming to establish a Bitcoin treasury reserve. This decision followed the board’s approval to allocate up to 50% of net profits towards acquiring Bitcoin (BTC). The company concurrently plans to raise up to $100 million to accelerate its BTC holdings. DigiAsia intends to generate yield on its Bitcoin investments through avenues such as lending and staking, actively engaging with regulated partners to manage these strategies. The company is also exploring the issuance of convertible notes or crypto finance instruments linked to its Bitcoin holdings.
This announcement triggered a dramatic market response. DigiAsia’s stock price (FAAS) surged over 91% to 36 cents on May 19th, closing the regular trading session with a significant gain. However, a post-market dip saw shares fall 22% to 28 cents. Despite this fluctuation, the company’s stock remains down nearly 53% year-to-date, a considerable drop from its peak of almost $12 in March 2024. DigiAsia’s financial performance shows revenue growth of 36% year-on-year to $101 million in 2024, projecting a further 24% increase to $125 million in 2025, along with an estimated earnings before interest and taxes of $12 million.
DigiAsia’s move follows a growing trend of corporations incorporating Bitcoin into their treasury reserves. This strategy, popularized by MicroStrategy, which currently holds the largest Bitcoin treasury among public companies (576,230 BTC valued at nearly $60.9 billion), is gaining traction. Other companies such as Strive Asset Management, transitioning into a Bitcoin treasury company, and GameStop, which recently completed a $1.5 billion convertible debt offering partially dedicated to Bitcoin acquisition, exemplify this trend. Collectively, corporate Bitcoin treasuries hold over three million BTC, worth over $300 billion, according to Bitbo data. This surge in corporate Bitcoin adoption is anticipated to significantly boost Bitcoin’s market capitalization, with predictions of reaching $200 trillion within the next decade. Currently, Bitcoin’s market cap stands at around $2 trillion, with BTC trading at approximately $105,642.
