Indonesian fintech company DigiAsia Corp made a splash when it announced plans to go big on Bitcoin. The news sent its stock price soaring, but the celebration was short-lived. Let’s break it down.
A Wild Ride for DigiAsia’s Stock
DigiAsia’s stock (FAAS on Nasdaq) shot up over 90% in a single day after revealing its Bitcoin strategy. However, this excitement quickly fizzled, with a 20% after-hours drop. This rollercoaster ride highlights the volatility of the crypto market and investor sentiment. The company’s stock was already down significantly this year, a far cry from its March 2024 high.
Bitcoin as a Treasury Asset: The Plan
DigiAsia isn’t just talking about Bitcoin; it’s making it a core part of its future. The company plans to use Bitcoin as a treasury reserve asset, meaning it will hold BTC alongside cash. They’ve also committed to allocating up to 50% of their net profits towards buying more Bitcoin. To fund this ambitious plan, DigiAsia aims to raise up to $100 million, potentially through convertible notes or other crypto finance tools. They’re also exploring ways to generate returns on their Bitcoin holdings, such as lending or staking.
Growing, But Still Small
DigiAsia’s 2024 revenue hit $101 million—a 36% increase year-over-year. They’re projecting even higher revenue for 2025. While this shows growth, the company is still relatively small compared to other major players adopting Bitcoin as a treasury asset, like Strategy (formerly MicroStrategy) or GameStop. Their ambition is clear, but they still have a long way to go to reach the scale of these giants.
Bitcoin’s Growing Corporate Appeal
DigiAsia’s move is part of a broader trend of companies adopting Bitcoin as a long-term investment strategy. Companies like Strategy (holding billions in BTC) and Strive Asset Management are already on board. With Bitcoin’s current market cap nearing $2 trillion, it’s clear that many see it as a valuable asset.
