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bonk
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bitcoin
Bitcoin (BITCOIN)
$105,603 -0.18%
ethereum
Ethereum (ETHEREUM)
$2,517 2.82%
binancecoin
BNB (BINANCECOIN)
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solana
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ripple
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pepe
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DigiAsia Launches Bitcoin Treasury Strategy with $100 Million Capital Raise Plan

Highlights:

  • DigiAsia will use up to 50% of its profits to buy Bitcoin.
  • The company is considering raising $100 million from various tools in the financial market.
  • The aim of DigiAsia is to hold Bitcoin for the long term and collect yield from strategies.

DigiAsia, a fintech business from Asia, announced that it aims to raise up to $100 million to invest in Bitcoin. This decision was approved by the company’s board, as they committed to using up to 50% of their future net profit to buy Bitcoin for a long-term digital reserve. With this move, DigiAsia joins the list of public companies using cryptocurrencies to broaden their corporate treasury holdings.

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As part of the strategy, DigiAsia will research different opportunities available in the capital market. This consists of equity-linked offerings, convertible notes, and various financial instruments in cryptocurrencies. The aim is to build up Bitcoin in a way that lets its value remain stable and allows for growth in the future. This decision demonstrates DigiAsia’s commitment to both fintech and the increasing role that blockchain is playing in their operations.

Capital Raise and Profit Allocation Strategy

In order to kickstart its Bitcoin treasury fund, DigiAsia aims to collect up to $100 million. The company is planning to use as much as half of its future net profits to buy Bitcoin. Through this approach, the company increases its crypto holdings and additionally uses the capital markets to begin financing its activities.

Raising capital helps a company in several ways. Along with Bitcoin, it promotes the development of DigiAsia’s whole fintech ecosystem. Currently, the company serves more than 70 leading companies and over 1.2 million merchants, mostly based in Indonesia. The wide coverage of this network creates an opportunity for businesses to easily use cryptocurrencies.

DigiAsia is working with top Southeast Asian cryptocurrency exchanges to make converting from fiat to cryptocurrency simple. With this feature, merchants will be able to use Bitcoin to process their payments. As a result, digital assets will be used more often among those conducting commerce in the region. The company also supports this strategy through its AI-based analytics and digital wallets.

Innovative Yield Generation and Regional Advantage

The company’s approach to Bitcoin involves activities more extensive than just holding it. The firm is engaging in discussions with regulated organizations to introduce yield-creating activities like institutional lending and staking. They intend to earn better returns for Bitcoin, keep the company’s financials strong and support the interests of shareholders.

The progressive crypto regulations in Indonesia support the company in exploring new trends. Being a top payment processor, DigiAsia benefits from the strong and supportive environment in the country. Its top position in the market and strong distribution system allow it to blend traditional financial services with products involving digital assets.

Furthermore, by including Bitcoin as a payment option in its B2B2X business model, DigiAsia aims to support the widespread use of crypto in Southeast Asia, India, and the Middle East. The initiative supports the company’s objective to provide services and gateways for digital assets and payments.

There was a positive response in the market following the firm’s plan to offer Bitcoin. Investors’ enthusiasm was noted by the 180% increase in shares after the announcement. Additionally, the firm joins Nasdaq-listed companies that now use Bitcoin in their treasury operations.

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