Bitcoin Goes Corporate In Indonesia With $100 Million Treasury Shift

Christian Encila

3 weeks ago

3 mins read

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Shares in Indonesian fintech firm DigiAsia Corp jumped sharply on May 19 after it revealed plans to put Bitcoin at the center of its future.

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. The announcement got a lot of attention—maybe too much, too fast.

Stock Soars On Bitcoin Reserve Plan

DigiAsia’s stock, which trades under the ticker FAAS on the Nasdaq, closed the day up more than 91% at 36 cents, Google Finance data shows. But the excitement didn’t last long.

After hours, the price dropped 20% to 28 cents. That sudden move shows how quickly investor mood can shift, especially when crypto is involved.

Source: Google Finance

The stock had been down around 50% this year before the announcement. It was trading close to $12 back in March 2024. Now, it’s nowhere near those highs. This latest surge looks like a shot of adrenaline, not a long-term fix.

Bitcoin Reserve Plan And Profit Pledge

DigiAsia isn’t just talking about Bitcoin—it’s making it part of its future profits. The company’s board has already approved a plan to treat Bitcoin as a treasury reserve asset. That means it’s not just holding cash; it wants BTC in its back pocket.

BTC is now trading at $104,977. Chart: TradingView

It also said it would put up to 50% of its net profits into acquiring Bitcoin. The company is currently looking to raise up to $100 million to get that plan moving. It might use tools like convertible notes or crypto finance products to do that.

Management is also in talks with regulated partners to figure out how to earn yield on its holdings, possibly through lending or staking.

Revenue Growing But Still Small

Based on an April 1 financial update, DigiAsia brought in $101 million in revenue in 2024, a 36% jump from the year before.

It’s aiming for $125 million in 2025, with projected earnings before interest and taxes of $12 million. That’s solid growth, but the company is still small compared to others getting into Bitcoin.

Some are questioning whether it’s ready to play in the same league as firms like Strategy or even GameStop, which raised $1.5 billion earlier this year. DigiAsia’s numbers show ambition, but also limits.

Bitcoin Adoption Among Public Companies

More and more companies are buying into Bitcoin, currently trading around $105,116, with a market cap close to $2 trillion, as a long-term strategy.

MicroStrategy, now known as Strategy, holds over 576,000 BTC—worth around $60.9 billion. Strive Asset Management also announced it’s shifting into a Bitcoin treasury approach.

Featured image from Unsplash, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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