Key Points
Neptune Digital Assets Corp., a Canadian infrastructure provider, experienced a 40% increase in its shares on over-the-counter markets. This surge was a result of a $20 million credit line secured from Sygnum Bank, a Swiss lender focused on digital assets.
The loan, which is backed by Neptune’s Bitcoin (BTC) holdings, will aid in the expansion of its Bitcoin assets. It will also be used to purchase other crypto-related assets and fund strategic investments, according to a press release issued by the firm on January 21.
Loan Structure and Future Plans
Neptune’s CEO, Cale Moodie, stated that the loan is structured to provide flexibility while ensuring Swiss banking protections over the Bitcoin collateral. He further added that the $20 million loan will aid in the expansion of their digital asset portfolio, pursuit of strategic investments, and strengthening of their balance sheet without diluting shareholders through equity issuance.
Sygnum Bank’s head of credit, Benedikt Koedel, expressed confidence in Neptune’s plans. He shared his excitement to support the firm as they expand their digital asset portfolio. Following the announcement, Neptune’s shares rose over 40% on OTCMarkets, reaching a record high of $1.15. The firm also trades on the TSX Venture Exchange under the ticker NDA.
This development comes amidst a flurry of activity from other public companies rushing to buy Bitcoin. This trend has been spurred by the first pro-crypto administration in the White House. For instance, Oxbridge Re Holdings Limited, a publicly listed reinsurance and tokenized asset firm, announced on Jan. 21 that it added Bitcoin and Ethereum (ETH) to its treasury reserves as a store of value.
