Nasdaq-traded DigiAsia plans $100 million funding round dedicated to buying Bitcoin.

DigiAsia Eyes $100 Million Raise to Build Bitcoin Treasury, Stock Soars 90%

DigiAsia Corp (FAAS), a Singapore-focused company catering to Southeast Asian markets, saw its shares jump over 90% after announcing plans to raise as much as $100 million to create a bitcoin treasury reserve.

The company disclosed on Monday that its board has approved a strategy to dedicate up to half of its future net profits to purchasing bitcoin. While the fundraising is still in the exploratory stage, the announcement sparked a rally in DigiAsia’s stock, which climbed to 36 cents before retreating slightly in after-hours trading. Despite the surge, the stock remains down over 50% for the year.

Alongside building its bitcoin holdings, DigiAsia plans to pursue income-generating strategies such as staking and institutional lending through regulated partners.

“Bitcoin offers a compelling long-term investment opportunity and serves as a foundational element for treasury diversification,” said Co-CEO Prashant Gokarn in a statement.

The firm is evaluating financing options including convertible notes and crypto-linked instruments to support its bitcoin acquisition goals.

In a recent update, DigiAsia reported revenue of $101 million for 2024 and forecasts earnings before interest and taxes of $12 million. While it remains to be seen how quickly the bitcoin treasury will materialize, the announcement has already injected fresh optimism into the stock.