At least four publicly-traded US firms announced on Tuesday that they would bulk up their crypto investments by a total of $844 million, adding to the number of corporations looking for a boost from Bitcoin and other cryptocurrencies.
The largest raise on Tuesday was from the Hong Kong-based heat-and-eat meal seller DDC Enterprise Ltd, which said that it entered into three purchase agreements totaling $528 million, all of which will be used to expand the firm’s Bitcoin (BTC) holdings.
The raise came almost entirely from a $300 million convertible note, a $200 million credit facility and a $26 million equity investment. Dallas-based investment firm Anson Funds was the largest investor, while the venture capital arm of Animoca Brands also made a large contribution.
DDC set out on a mission to have the “world’s most valuable Bitcoin treasury” and purchased its first batch of 21 Bitcoin on May 23 in exchange for nearly 255,000 shares in a $2.28 million deal.
DDC said it plans to buy 5,000 Bitcoin over the next three years — a target it could reach with the $528 million secured, based on current prices.
Bitcoin firm Fold raises $250 million for BTC buys
Fold Holdings Inc, the first publicly traded Bitcoin financial services firm, said on Tuesday that it secured a $250 million equity purchase facility, with the net proceeds “primarily intended” to fund additional Bitcoin purchases.
Source: FolBitcoin
The agreement allows Fold to issue and sell up to $250 million in newly issued shares to fund the Bitcoin buys at its discretion — subject to a registration statement for the resale of the shares receiving approval from the Securities and Exchange Commission.
If approved, the shares will be sold through a private placement under exemptions from SEC registration rules. In a private placement, firms raise funds by selling securities to private investors instead of through a public market offering.
At current prices, $250 million could theoretically purchase 2,390 Bitcoin for Fold. Allocating even half of that amount to Bitcoin acquisitions would substantially boost Fold’s current treasury of 1,490…
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