DL Holdings Plans $83 Million Blockchain Fundraise

DL Holdings, a financial services group listed in Hong Kong, announced its intention to raise HK$653.3 million (approximately $83.2 million) through share placements for blockchain projects. Following this news, the company's stock plummeted by over 8% on Thursday. In a filing with the Hong Kong Stock Exchange, DL Holdings revealed that it entered a placing and subscription agreement. Selling shareholders will sell shares to at least six buyers at a price of HK$2.95 per share, and then immediately buy back the same number of new shares at that price from the company. These shares represent about 13.58% of the company's current issued share capital, which will reduce to approximately 11.96% after the new shares are issued. The proceeds from this fundraising will primarily be used to enhance their blockchain and crypto asset initiatives. Specifically, allocations will include 30% for real-world asset tokenization and strategic investments, 15% for bitcoin mining operations and reserves, 8% for the development of digital assets and stablecoins, and 7% for acquiring crypto asset trading licenses in Hong Kong. The remaining funds will bolster IT infrastructure, ETF development, U.S. real estate investments, and overall working capital. As of Thursday, DL Holdings' stock had fallen by 8.4% to HK$3.07 at the time of writing, according to Yahoo Finance, with markets still open.