DL Holdings, a Hong Kong-domiciled financial services conglomerate, has revealed a major fund-raising plan, which aims to raise HK$653.3 million (approx. $83.2 million) to fuel its forays in blockchain and crypto ventures.
The deal, which was revealed in a filing with the Hong Kong Stock Exchange, is a placing and subscription arrangement under which current shareholders will dispose of shares to a minimum of six investors at HK$2.95 apiece.
DL Holdings will subsequently use the shares to purchase and retire them and issue them as new shares at the same price.
The proceeds raised will do much to support the company’s strategic investments across several blockchain-related domains, marking a significant momentum towards digital assets.
Share Placement Structure and Impact on Capital Structure
The company clarified that the shares being placed represent roughly 13.58% of DL Holdings’ current issued share capital.
Once the transaction is completed and new shares are issued, this figure will be reduced to approximately 11.96%.
The share dilution was one of the key concerns for investors, triggering a sell-off that sent DL Holdings’ shares 8.4% lower to HK$3.07 by Thursday afternoon.
This near-term market reaction aside, the move is part of a broader long-term strategy to refocus DL Holdings as a blockchain-focused firm in the rapidly evolving digital finance environment.
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Allocation Strategy Targets Blockchain Infrastructure and Innovation
In line with the company’s declaration, the raised $83 million will be strategically invested in a range of blockchain and crypto initiatives.
About 30% will be utilized towards real-world asset tokenization and other strategic ventures, while 15% will be used for the expansion of bitcoin mining activities and the establishment of crypto reserves.
Another 8% is being directed towards building digital assets and stablecoin business lines, and 7% towards acquiring a crypto trading license in Hong Kong.
The remaining proceeds will support IT infrastructure, ETF development, US real estate investments, and general working capital needs, indicating a diversified approach to digital innovation.
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Market Response and Context within Broader Blockchain Funding Trends
While DL Holdings’ stock experienced a notable dip, the announcement comes amid a broader surge in institutional funding for blockchain ventures.
On June 24, the privacy-focused blockchain platform Canton Network secured $135 million in strategic funding from DRW Venture Capital.
Canton aims to support tokenized real-world assets such as bonds and insurance products, reflecting a growing institutional appetite for enterprise-grade blockchain solutions.
Similarly, on June 26, Zama raised $57 million in a Series B round to scale its fully homomorphic encryption virtual machine (FHEVM), pushing encrypted smart contracts into the mainstream for public blockchains.