Neptune Digital Assets Corp Sees 40% Stock Surge After Securing $20 Million Credit Facility

Shares of Neptune Digital Assets Corp, a Canadian crypto infrastructure provider, skyrocketed 40% on over-the-counter markets following the announcement of a $20 million credit facility from Sygnum Bank, a Swiss digital asset-focused lender.

The loan, collateralized by Neptune’s Bitcoin holdings, will be used to expand the company’s Bitcoin stash, purchase other crypto-related assets, and fund strategic investments. This move demonstrates Neptune’s commitment to growing its digital asset portfolio and strengthening its balance sheet.

CEO Cale Moodie on the Loan

“The loan is structured to give us ample flexibility while maintaining Swiss banking protections over the Bitcoin collateral. At this pivotal stage in our development, the US$20 million positions us to expand our digital asset portfolio, pursue strategic investments, and strengthen our balance sheet — without diluting shareholders through equity issuance.”

Sygnum Bank also expressed confidence in Neptune’s plans, with head of credit Benedikt Koedel stating his excitement to support the firm “as they expand their digital asset portfolio.”

Market Response and Trading Information

The market responded swiftly, with Neptune’s shares surging over 40% on OTCMarkets to a record high of $1.15. The company also trades on the TSX Venture Exchange under the ticker NDA.

This move is part of a growing trend among public companies to invest in cryptocurrencies under the current pro-crypto administration. For instance, Oxbridge Re Holdings Limited, a publicly listed reinsurance and tokenized asset firm, recently added Bitcoin and Ethereum to its treasury reserves as a store of value.

Tips for Investing in Cryptocurrencies

  • Conduct thorough research on the company and its investment strategy before investing.
  • Diversify your portfolio to minimize risk.
  • Stay informed about market trends and regulatory changes.
  • Consider consulting with a financial advisor before making investment decisions.

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