DigiAsia Plans to Buy Bitcoin with 50% of Future Profits After 91% Stock Surge

Indonesia-based fintech company DigiAsia, listed on Nasdaq under the ticker FAAS, announced plans to raise $100 million to purchase Bitcoin.

Indonesia-based fintech company DigiAsia, listed on Nasdaq (ticker: FAAS), announced plans to raise $100 million for purchasing Bitcoin (BTC) and allocating up to 50% of its future net profits to the cryptocurrency. The company is also exploring yield-generating strategies such as lending and staking through partnerships with regulated entities.

Following the announcement, DigiAsia's stock price surged by approximately 90%, showcasing investor response to the firm's move.

The company's statement on Friday outlined its intention to apply for a private placement of convertible preferred stock for gross proceeds of $100 million. These funds will be allocated toward purchasing Bitcoin and related instruments. DigiAsia plans to begin buying Bitcoin within the next two weeks.

Moreover, the company intends to contribute up to 50% of its future net profits toward accumulating more Bitcoin. DigiAsia is actively seeking partnerships with institutions in Singapore and the British Virgin Islands for lending and staking activities, aiming to generate yield on its cryptocurrency holdings.

DigiAsia's subsidiary, Asia Digital Holdings, received approval from the Monetary Authority of Singapore to operate a digital payment token services provider. This authorization allows DigiAsia to engage in cryptocurrency exchange and custodial services with institutional clients in Singapore.

Announced in March, DigiAsia's stock price surged by 89% on Friday. The company's stock had already experienced a significant rally of over 300% since the beginning of the year.

This move by DigiAsia follows a broader trend of companies incorporating Bitcoin into their balance sheets. Notably, software company MicroStrategy (NASDAQ:MSTR) has been a pioneer in this approach, driven by CEO Michael Saylor's vision.