DL Holdings Raises Funds for Blockchain Despite Share Drop

• DL Holdings raises HK$653.3 million to expand into blockchain and crypto ventures.
• Shares of DL Holdings drop 8.96% as the company announces a new capital raise for blockchain.
• Venture capital in the crypto sector surged in Q2 2025, raising over $10 billion.

DL Holdings has raised HK$653.3 million ($83.2 million) to fund its blockchain and crypto-related ventures. This announcement caused a drop of over 8% in its shares on Thursday. The Hong Kong-listed financial services firm disclosed the details through a stock exchange filing. The capital raise is part of a broader strategy to enter the digital assets space.

The deal includes both the sale of existing shares and the issuance of new ones. At HK$2.95 per share, the shareholders will allot their holdings to a minimum of six investors. These investors will subscribe to an equal number of new shares at the same price. The deal will affect about 13.6% of DL Holdings’ issued share capital, which will drop to under 12% after the issuance.

DL Holdings Allocates Funds to Diverse Blockchain and Crypto Ventures

The funds raised will be allocated to several blockchain initiatives. Approximately 30% will support tokenization of real-world assets and other strategic investments. Around 15% will go towards expanding Bitcoin mining operations and increasing reserves. The company also plans to invest 8% in developing its digital asset and stablecoin businesses. Another 7% of the funds will be used to acquire crypto trading licenses in Hong Kong. The remainder will be allocated to improving IT infrastructure and supporting ETF development. 

The firm will invest approximately 10% of the funds in the ONE Carmel premier residence in the United States. This investment aims to enhance the Group’s presence in Silicon Valley and to develop AI and RWA initiatives, making them more dynamic in the future. Another 10% will be allocated to the IT infrastructure and system upgrade. Such improvements will facilitate the development of the digital asset and financial technology strategies of the Group.

Approximately 10% will go to the development of exchange-traded funds (ETFs) and the building of quantitative investment capacity. This will involve the development of new ETF products and the improvement of algorithmic trading to expand the financial products. Finally, the last 10% will be allocated to restoring the Group’s working capital. This will aid in supporting the day-to-day operations of the Group. The distribution of funds highlights the firm’s diverse approach to blockchain and crypto ventures.

Even with the positive outlook, investors maintained a cautious stance toward the proposed capital raise. DL Holdings’ stock fell 8.96% to HK$3.05 by Thursday, signaling ambiguity about the firm’s move into the crypto sector. Nevertheless, the company continues to be convinced of the potential of blockchain investments.

Specific Mandate Subscription Shares: Allocation and Market Impact

The Specific Mandate Subscription Shares will be capped at 20,000,000. As of the announcement date, these shares constitute 1.35% of the issued share capital of the company, but there is no exclusion of the treasury shares.

After the allotment and issuance, they will represent 1.33% of the issued share capital, assuming no other changes. Following the completion of the Specific Mandate Subscription, they will account for 1.17% of the enlarged share capital.

The 20,000,000 Specific Mandate Subscription Shares have a nominal value of HK$200,000. Their market value is approximately HK$67 million, based on the closing price of HK$3.35 per share on the last trading day.

Related: UK-based Firm Satsuma Technology Raises £163.6M via Convertible Notes

Venture Capital Surge Signals Renewed Interest in Crypto

The announcement emerges at a moment when venture capital across the crypto sector is on the upswing. During Q2 2025, firms brought in over $10 billion, the highest quarterly haul since Q1 2022. Investor confidence, dormant for months, appeared to rebound during June, when $5.14 billion was raised. This strong bounce was a sign of the re-entry of interest in crypto-space.

Prominent cryptocurrency projects such as Strive raised $750 million to pursue strategies centered on Bitcoin. An additional $585 million was secured by TwentyOneCapital. Together with the money raised by other firms such as Securitize and Auradine, these investments reveal an increasing appetite for crypto ventures. The growing flow of capital highlights the mounting level of interest in blockchain technologies.

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