XPG preps B10m for digital deals

XPG preps B10m for digital deals

Company insists it won't speculate on cryptocurrencies

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken on Tuesday.
A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken on Tuesday.

XSpring Capital Plc (XPG) has invested 10 million baht in digital assets to explore the feasibility of investing in cryptocurrencies and digital assets.

Wanchak Buranasiri, XPG's chief executive, reported to the Stock Exchange of Thailand (SET) yesterday that the company has no intention of speculating on cryptocurrencies since XSpring Digital, XPG's subsidiary and a licensed initial coin offering portal, is currently applying for a licence to operate as a digital asset broker and digital asset dealer with the Securities and Exchange Commission (SEC).

Mr Wanchak said the company capped its investment in digital assets at 10 million baht.

The investment is made under the investment budget framework and the investment policy determined by the company's board of directors meeting on Aug 11 which delegated power to the Investment Committee to consider and make a final decision on this matter.

Hence, according to the company's latest consolidated financial statement on June 30, the total transaction size of the investment, based on the total value of consideration paid criteria, which gives the highest value, is equivalent to 0.12%.

Prior to making the investment, the company considered various factors such as risk assessment and potential impact, measures and mechanisms for risk management, readiness of the working system and personnel, analysis and selection of digital assets, and investment tracking tools.

XPG has also disclosed the information related to the investment via the SET's electronic information transmission system, the company's website and the annual registration statement and annual report to the SEC to ensure that investors can access accurate and sufficient data for decision making.

According to Coingecko.com, the price of Bitcoin has increased almost 100% since the beginning of the year, culminating in a fresh high of US$67,276 on Oct 21 following the debut of the Bitcoin futures exchange traded-fund on the New York Stock Exchange on Tuesday.

According to Asia Plus Securities, the US regulator's approval of the trading of such cryptocurrency-related funds on the exchange prompted demand for the cryptocurrency from institutional investors.

In addition to the fund, many big companies' adoption of Bitcoin as a payment method, such as Amazon, which announced it may start accepting the coin in the second half of the year, is also another factor driving up prices.

Do you like the content of this article?
COMMENT

Forced labour

An 18-year-old has sought protection from the Justice Ministry, telling a harrowing story after escaping from a call scam gang he was tricked into working for in Cambodia.

18:10

China's high-tech warplanes pose 'big new threat' to Taiwan

China's deployment of J-16D jets into Taiwan's air defence zone this week marked the first sighting of the new high-tech warplanes, Taipei confirmed Tuesday, their electronic-jamming equipment posing a fresh threat to the island.

17:56

Russia says US troop alert 'escalating tensions'

MOSCOW: Moscow on Tuesday accused the United States of ratcheting up tensions over Ukraine after Washington put several thousand troops on alert for possible deployment to boost NATO.

17:45