DigiAsia which has added Bitcoin to its treasury has seen a great reaction in the market. Shares went up by 91% in a single day which is a large step into their digital asset plan. Headquartered in Jakarta the tech company is out to be at the front of crypto based corporate treasury management.
DigiAsia’s Bitcoin Treasury Game Plan
On that May 19 report DigiAsia broke into the news that they have put in a plan of $100 million to go into Bitcoin. What they are doing is to put up to 50% of our future net profits into Bitcoin. At the same time they are going out to the market to raise that capital which supports this move. Also as reported by Co-CEO Prashant Gokarn Bitcoin is a base element of our modern treasury diversification.
But DigiAsia is going beyond just Bitcoin. The company will be putting out yields with regulated crypto partners. They are into:
- Institutional lending programs
- Crypto staking solutions
- Structured financial instruments for enhanced returns
- They are looking at convertible notes, equity linked offerings, and more.
DigiAsia Bitcoin Drive See’s Share Price Rise.
The report which set off DigiAsia’s shares saw them rise 91% to close at 36 cents on May 19. But what the saying goes is that the story played out differently post the fact. Shares went down by 22% that time settling at 28 cents. That which transpired is a picture of the speculatory mania around corporate Bitcoin reports. Although the initial jump was there the stock is still 53% down year to date which had it at a peak of almost $12 in March 2024.
Yet, DigiAsia isn’t a desperate exit from their present course. In 2024 the company reported $101 million in revenue which is a 36% increase year on year and also projects to see a 24% growth in 2025. Also with pre tax profits at $12 million DigiAsia is jumping into crypto from a strong base.
DigiAsia Bitcoin Trend Mirrors Big Players
DigiAsia has put in place a strategy which puts it in the same class as giants like MicroStrategy (now just Strategy) which is holding 576,230BTC worth over $60 billion. Also see other players which have jumped on this trend to include:
- Metaplanet, holding 7,800 BTC
- GameStop which has raised $1.5 billion for Bitcoin.
- Strive Asset Management, pivoting into crypto
Collectively today public companies hold over 3M BTC which at the time of the report were worth $340B. At the report’s issue point Bitcoin was at $105,642 and a $2T market cap.
Bold and Risky Strategy
The benefits for DigiAsia include: DigiAsia’s benefits include:
- Treasury diversification
- Potential price appreciation
- Yield generation from crypto assets
- Positioning as a fintech innovator
However, we still see issues at hand. Bitcoin’s fluctuating value, regulatory uncertainty, and the complex issue of yield strategies put forth problems ahead. Also in terms of what the market thinks traditional investors may not buy into crypto exposure.
Conclusion:
DigiAsia has put its money into Bitcoin which is a play for the future of digital assets. We saw an immediate and large-scale reaction from the market which was mostly negative, but we will know of its success in the long run by how Bitcoin does and how well they execute their yield strategies. As more companies look to do the same DigiAsia is right at the front of the crypto finance revolution.
