Is a Southeast Asian company turning Bitcoin into "company savings"? A clear explanation of DigiAsia's new challenge!
Hello, I'm John, your blockchain guide!
If you've been feeling like there's been a lot of difficult news lately, today we'll bring you some exciting news. We've just received news that a company called DigiAsia Corp, which is gaining attention in Southeast Asia, will start holding Bitcoin as a company asset!
I will explain it slowly so that even those who are asking for the first time, "Wait, companies own Bitcoin?" and "What does that mean?" can understand!
What kind of company is DigiAsia? We also explain "Fintech"!
First, let me briefly introduce the main subject of this news, DigiAsia Corp. This company is one of the fintech companies active in Indonesia and other parts of Southeast Asia.
Some of you may be wondering, "What is Fintech?" Fintech is,A combination of "finance" and "technology."Fintech refers to the use of IT to provide new and more convenient financial services. For example, services that allow you to easily transfer money using your smartphone or make cashless payments at stores are typical examples of fintech.
DigiAsia is a company that provides technology and platforms (the systems that serve as the foundation for providing services) to help other companies easily start providing financial services, particularly in the form of "Fintech-as-a-Service."
Does the company own Bitcoin? What is a "Bitcoin financial strategy"?
Next, let's talk about the most important point of this news: Bitcoin financial strategy.
A "Corporate Treasury Strategy" is a plan for how to manage the money and other assets (company property) that a company has and use them for the future.It's a bit like when you think at home, "How can we best manage our savings?"
And the "Bitcoin Financial Strategy" isUse a portion of the company's funds to hold and manage "Bitcoin"That's the strategy.
You may have heard of the word "Bitcoin". It is a type of digital currency that can be used on the Internet, and its main feature is that it is not managed by any particular country or bank. DigiAsia seems to be aiming to hold this Bitcoin for the long term as one of the assets to be built in the future.
How to get Bitcoin? Funding story
"But where does the money come from for companies to buy Bitcoin?" you may be wondering.
As a first step in launching its Bitcoin financial strategy, DigiAsia announced that it has signed an agreement to borrow approximately $300 million (approximately 4 million yen in Japanese yen, the amount may vary depending on the exchange rate).
The money will be borrowed from an investment firm called High West Capital Partners. The loan is reportedly a non-recourse loan.Even if you are unable to repay the borrowed money, only the purchased Bitcoin will be subject to seizure, and the company's other important assets (such as company buildings and other business funds) will be protected.For a company, this is one way to reduce the risk of taking on a new challenge.
And surprisingly, the $300 million is just the beginning. DigiAsia is reportedlyIn the long term, the company aims to hold as much as $1 million in Bitcoin (approximately 150 billion yen or more in Japanese yen! This amount also fluctuates depending on the exchange rate).Yes, that's a pretty big plan!
Why are companies turning to Bitcoin?
Naturally, the question arises: "Why would a company want to hold Bitcoin in the first place?" There are several possible reasons for this, but to make it easy for beginners to understand, the main points are as follows:
- New asset potential:Bitcoin is attracting attention around the world as a new type of digital asset that is different from traditional assets such as stocks and real estate. There are companies and investors who expect that its value may increase in the future. (Of course, there is also the risk that its value may decrease.)
- To protect against inflation:Some companies are choosing Bitcoin as a way to prepare for the situation where the amount of money circulating in society increases too much and its value decreases relative to other things (this is called inflation, or simply inflation).
However, the movement of companies to hold Bitcoin as an asset in earnest is still a new trend worldwide. Several companies have already started in the United States and other countries, but it may still be rare for a Southeast Asian company to adopt such a strategy. With a company like DigiAsia taking the lead in this challenge, attention will be focused on whether other companies will follow suit.
A word from John
I personally found this news very interesting, that a Southeast Asian fintech company is adopting Bitcoin as a company asset strategy. This may be one piece of evidence that Bitcoin is not only recognized by a few tech-savvy people, but is beginning to be recognized as a "means of storing value" and "one of the investment targets" by a wider range of people. Since this is still a new field, John is excited to see how the relationship between companies and Bitcoin will develop in the future! I hope that this news will make you a little more interested in the world of Bitcoin and blockchain.
This article is based on the following original articles and is summarized from the author's perspective:
Fintech Company DigiAsia Corp to Launch Bitcoin Treasury
Strategy