Shares in Indonesian fintech firm DigiAsia Corp jumped sharply

The company wants to raise $100 million to start building a BTC reserve, and it says half of its net profits will go toward buying more.

Shares in Indonesian fintech firm DigiAsia Corp (NASDAQ:DGIAC) soared sharply on Thursday after the company revealed plans to prioritize Bitcoin (BTC) in its future plans.

The company aims to begin a Bitcoin reserve and allocate up to 50% of its net profits to acquiring the cryptocurrency. It's also seeking to raise up to $100 million to support this plan.

The stock closed the day up more than 91% at 36 cents. In after-hours trading, the stock dropped 20% to 28 cents.

For the year to date, the stock is down about 50%. Back in March 2024, the stock was trading around the $12 mark.

Bitcoin Integration In DigiAsia's Strategy

DigiAsia's board has approved treating Bitcoin as a treasury reserve asset and allocating up to 50% of net profits to acquiring Bitcoin.

The company plans to prioritize utilizing convertible notes to raise up to $100 million. Additionally, management is in discussions with regulated partners regarding earning yield on its holdings through lending or staking.

Financial Performance And Growth Plans

According to an April 1 financial update, DigiAsia reported revenue of $101 million in 2024, showing a 36% increase year-over-year.

The company's goal is to achieve revenue of $125 million in 2025, with projected earnings before interest and taxes (EBIT) of $12 million.

Some analysts are questioning if DigiAsia is prepared to play in the same league as firms like Strategy (NASDAQ:MGSI), which has already bought 576,000 Bitcoin at an average price of over $105,116, valuing its holding at roughly $60,9 billion.

Strive Asset Management (NYSE:STRV) also announced its shift into a Bitcoin treasury approach earlier this week.