Hong Kong-listed DL Holdings plans $83 million raise to fund blockchain initiatives
DL Holdings, a Hong Kong-listed financial services group, saw its stock fall more than 8% on Thursday after announcing plans to raise HK$653.3 million ($83.2 million) through share placements to fund its blockchain initiatives.The company disclosed in a filing with the Hong Kong Stock Exchange that it has entered into a placing and subscription agreement where selling shareholders will sell shares to at least six buyers at HK$2.95 per share through placing agents, then immediately repurchase the same number of new shares from the company at the identical price. The shares being placed represent approximately 13.58% of the company's current issued share capital, which will decrease to about 11.96% after the new shares are issued to complete the transaction.DL Holdings said it plans to allocate the proceeds primarily toward blockchain and crypto asset initiatives, including real-world asset tokenization and strategic investment (30%), bitcoin mining operations and reserves (15%), digital assets and stablecoin business development (8%), crypto asset trading licenses in Hong Kong (7%), with the remaining funds supporting IT infrastructure, ETF development, U.S. real estate investment, and working capital.Following the company's announcement, its stock fell 8.4% to HK$3.07 at the time of writing on Thursday, according to Yahoo Finance data, with the market still open.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.