Davis Commodities Limited, a Singapore-based agricultural commodity trader listed on Nasdaq (DTCK), has revealed a strategic capital allocation plan involving its recent USD 30 million financing round. According to a June 16 report by COINOTAG referencing Globenewswire, the firm will dedicate 40% of the funds (USD 12 million) to incrementally build its Bitcoin reserves, starting with an initial injection of USD 4.5 million. This move underscores the company’s commitment to diversifying its asset base through digital currencies.
In parallel, Davis Commodities is channeling 50% of the capital (USD 15 million) towards the tokenization of real-world agricultural assets (RWA), focusing on bulk commodities such as sugar and rice. This innovative approach aims to enhance liquidity and transparency in commodity trading, with the company projecting an annual revenue uplift of USD 50 million within a two-year horizon.
The remaining 10% of the financing will be invested in strengthening the company’s digital infrastructure and cybersecurity frameworks, ensuring robust protection against emerging threats. This balanced allocation strategy reflects Davis Commodities’ forward-looking vision in integrating blockchain technology with traditional agricultural markets.