Jakarta-based fintech DigiAsia Corp just threw its hat into the Bitcoin ring, and the market loved it (at least for a minute). The Nasdaq-listed firm announced on May 19 that it’s cooking up a $100 million capital raise to kick off its shiny new Bitcoin “treasury reserve.”
Not only that, but DigiAsia said it’s ready to go full laser eyes: it plans to funnel up to 50% of its net profits into buying BTC. Because what’s fintech without a little crypto drama?
The company isn’t stopping at buying and holding. It’s chatting with regulated partners about generating yield via staking and lending, and even considering offering convertible notes or crypto-linked finance products tied to its future Bitcoin bag. Bold moves for a stock that’s been on a rollercoaster all year.
Stock Pops 91%… Then Drops Like a Mic
Investors initially lost their minds in a good way. DigiAsia’s stock (ticker: FAAS) soared over 91% to close at 36 cents on May 19 after the Bitcoin bombshell.
Then reality or maybe profit-taking hit: after-hours trading saw the stock slide 22% to 28 cents. Just to keep things spicy, the stock is still down 53% in 2024, after peaking at nearly $12 in March. That’s a comeback arc if we’ve ever seen one.
Betting on Bitcoin… and Future Growth
DigiAsia reported $101 million in revenue for 2024, a solid 36% year-on-year jump, and is forecasting $125 million for 2025, along with $12 million in earnings before interest and taxes (EBIT).
Its strategy echoes that of Michael Saylor’s MicroStrategy (now "Strategy"), the OG corporate Bitcoin whale, which holds 576,230 BTC worth nearly $60.9 billion. Corporate Bitcoin treasuries collectively hold over 3 million BTC, valued at $340 billion.
GameStop, Strive Asset Management, and others are jumping on the Bitcoin bandwagon too. Some, like GameStop, even raised $1.5 billion through convertible debt to grab a piece of the digital pie.
Meanwhile, Bitcoin itself is flexing with a market cap of $2 trillion, and BTC is trading at $105,642, up 2% in the past 24 hours, according to CoinGecko.
Blockstream’s Adam Back even predicted Bitcoin-focused firms could push the asset’s market cap to a mind-bending $200 trillion in the coming decade. Ambitious? Sure. Impossible? Not if DigiAsia and friends keep stacking sats.
Gunel Ismayilova
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