DL Holdings to Raise $83M for Blockchain Push, But Stock Drops 9% Amid Investor Concerns

DL Holdings (XHKG: 1709), a Hong Kong-listed fintech and wealth management company, has announced plans to raise HK$653.3 million (approximately $83.2 million) through a new share placement. The capital will fund a broad array of blockchain and digital asset ventures, signaling the firm’s deepening commitment to the Web3 economy.

The company’s August 6 filing outlines the following allocation plan for the HK$653.3 million raise:

• 30% for real-world asset (RWA) tokenization and strategic Web3 investments

• 15% for Bitcoin mining operations and reserve accumulation

• 8% for digital asset infrastructure, including stablecoin development

• 7% for securing a Virtual Asset Trading Platform (VATP) license in Hong Kong under the city's evolving regulatory regime

The remaining funds will support IT upgrades, research and development for ETFs tied to crypto assets, U.S. real estate investments, and general working capital.

Founded in 2011, DL Holdings has traditionally focused on wealth management and asset allocation for high-net-worth individuals, including investments in U.S. real estate and alternative assets. The company’s latest blockchain venture signals a strategic shift toward building next-generation financial infrastructure, moving beyond its legacy business model.

The fundraising initiative aligns with Hong Kong’s ambitions to become a regulated hub for digital finance. The city has rolled out a licensing regime for crypto exchanges since June 2023 and has encouraged financial institutions to explore blockchain and tokenized assets. DL Holdings’ strategic move appears to ride this wave of regulatory clarity and institutional enthusiasm.

Despite the forward-looking agenda, the market reacted with caution. DL Holdings shares fell 8.9% to HK$3.05 on Thursday, just after the fundraising news broke. The drop reflects investor concerns over execution risks and profitability timelines, particularly amid ongoing volatility in the broader crypto sector.

Still, DL Holdings’ push is part of a larger financing boom within Hong Kong’s crypto and fintech sectors. At least 10 publicly listed companies in Hong Kong raised more than HK$15 billion (US$1.9 billion) through equity placements in July 2025, seeking to capitalize on surging interest in stablecoins, blockchain infrastructure, and digital assets. This trend underscores Hong Kong’s transformation into a proving ground for Asia’s next generation of fintech innovation.