Shares of Canadian crypto provider Neptune surged 40% after it secured a $20 million credit facility from Sygnum Bank to buy Bitcoin.
Neptune Digital Assets Corp., a public Canadian infrastructure provider, saw its shares climb 40% on over-the-counter markets after locking in a $20 million credit line from Sygnum Bank, the Swiss digital asset-focused lender.
The loan, backed by Neptune’s Bitcoin (BTC) holdings, will help it expand its Bitcoin stash as well as buy other crypto-related assets, and fund strategic investments, the firm said in a Jan. 21 press release.
“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.”
Cale Moodie, Neptune’s CEO
Sygnum Bank also pears confident in Neptune’s plans, with head of credit Benedikt Koedel sharing his excitement to support the firm “as they expand their digital asset portfolio.” The market responded fast, with Neptune’s shares surging over 40% on OTCMarkets to a record high of $1.15. The firm also trades on the TSX Venture Exchange under the ticker NDA.
The move followed a wave of activity from other public companies rushing to buy Bitcoin under the first pro-crypto administration in the White House. For example, 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.
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