DigiAsia Corp's Bitcoin Strategy Sparks Stock Surge

According to Cointelegraph, Indonesian fintech firm DigiAsia Corp experienced a significant surge in its stock value following the announcement of its ambitious Bitcoin acquisition strategy. The Jakarta-based company, listed on Nasdaq, revealed plans on May 19 to establish a Bitcoin treasury reserve, committing up to 50% of its net profits to fund Bitcoin purchases. Additionally, DigiAsia is exploring a capital raise of up to $100 million to initiate its Bitcoin holdings, with intentions to generate yield through lending and staking. DigiAsia has begun discussions with regulated partners to develop yield strategies and manage its prospective Bitcoin assets. The company is also considering offering convertible notes or crypto finance instruments linked to its Bitcoin plans. Following the announcement, DigiAsia's shares (FAAS) closed on May 19 with a remarkable gain of over 91%, reaching 36 cents. However, post-market trading saw a decline of 22%, bringing the stock down to 28 cents. Despite this recent volatility, DigiAsia's shares have decreased nearly 53% this year, having peaked at just under $12 in March 2024. In its financial update on April 1, DigiAsia reported a 36% increase in revenues year-on-year, reaching $101 million in 2024. The company projects a 24% growth to $125 million in 2025, with expected earnings before interest and taxes of $12 million. The trend of companies incorporating Bitcoin into their corporate holdings is growing, inspired by Michael Saylor’s Strategy, formerly MicroStrategy, which holds the largest Bitcoin reserves among public companies at 576,230 BTC, valued at nearly $60.9 billion. Strive Asset Management recently announced its transition into a Bitcoin treasury company, while GameStop Corporation (GME) completed a convertible debt offering on April 1, raising $1.5 billion, with some proceeds allocated for Bitcoin purchases. Corporate Bitcoin treasuries collectively hold over three million Bitcoin, valued at over $300 billion, according to Bitbo data. Blockstream co-founder and CEO Adam Back has predicted that companies with Bitcoin-focused treasuries are driving global adoption and could propel Bitcoin’s market cap to $200 trillion in the next decade. Currently, Bitcoin’s market cap stands at approximately $2 trillion, with BTC trading at $105,642, marking a 2% increase in the past day, as reported by CoinGecko.