Neptune shares rise 40% after securing $20m credit line to buy more Bitcoin

Shares of Canadian crypto provider Neptune jumped 40% after securing a $20 million credit facility from Sygnum Bank to buy Bitcoin.

Neptune Digital Assets Corp., a Canadian public infrastructure provider, saw its shares rise 40% in over-the-counter markets after securing a $20 million credit line from Sygnum Bank, the Swiss lender focused on digital assets.

The loan, backed by Neptune’s Bitcoin (BTC), will help it expand its Bitcoin stash, purchase other crypto-related assets, and fund strategic investments, the company said in a Jan. 21 statement. press release.

“The loan is structured to provide us with great flexibility while maintaining Swiss banking protections on the Bitcoin collateral. At this crucial stage of our development, the US$20 million allows us to expand our portfolio of digital assets, pursue strategic investments and strengthen our balance sheet, without diluting shareholders through the issuance of shares.

Cale Moodie, CEO of Neptune

Sygnum Bank also appears confident in Neptune’s plans, with head of credit Benedikt Koedel sharing his excitement about supporting the company “as it expands its portfolio of digital assets.” The market reacted quickly, with Neptune shares surging more than 40% on OTCMarkets to hit a record high of $1.15. The company also trades on the TSX Venture Exchange under the symbol NDA.

The move follows a flurry of activity from other public companies rushing to buy Bitcoin during the White House’s first pro-crypto administration. For example, Oxbridge Re Holdings Limited, a publicly traded reinsurance and token assets company, announcement on January 21, it added Bitcoin and Ethereum (ETH) to its cash reserves as a store of value.