Davis Commodities Unveils $30M Initiative to Integrate Bitcoin and RWA Tokenization
SINGAPORE — Davis Commodities Limited (NASDAQ: DTCK), a Singapore-based agricultural commodities trader with a market cap of $19.84 million and annual revenue of $132.37 million, announced a $30 million strategic initiative on Monday aimed at integrating Bitcoin reserves and Real-World Asset (RWA) tokenization into its core business operations.
According to InvestingPro data, the company is currently trading at $0.77 per share and maintains a moderate level of debt. Of the $30 million raised, 15% (or $4.5 million) will be initially allocated to Bitcoin reserves, with plans to expand that allocation to 40% over time. This move is part of Davis Commodities’ broader strategy to diversify its asset management framework amid ongoing profitability challenges. The company reported a slim gross profit margin of 1.76% and negative earnings over the past 12 months.
The bulk of the funding — 50% or $15 million — will be directed toward RWA tokenization projects, focusing on agricultural commodities such as sugar, rice, and edible oils. The company believes tokenization will open up new liquidity channels and enhance trading efficiency in the agricultural sector.
An additional 10% ($3 million) will be used to strengthen the firm’s technological infrastructure, bolster cybersecurity, and forge strategic partnerships to support its entry into the digital asset space.
“By integrating Bitcoin reserves and RWA tokenization, we are not only strengthening our position as a leading agricultural trader but also embracing the vast opportunities at the intersection of traditional commodities and digital assets,” said the company’s CEO in a press release.
Davis Commodities operates under the Maxwill and Taffy brands, distributing products to more than 20 countries as of December 31, 2024. InvestingPro highlights that the stock has experienced notable price volatility. Additional insights, including financial health scores and Fair Value estimates, are available to InvestingPro subscribers.
The company also noted Bitcoin’s strong performance, citing returns of 156% in 2023, 121% in 2024, and over 14% in 2025 to date. It referenced industry forecasts projecting the RWA tokenization market could grow to $16 trillion by 2030.
In parallel with its digital asset push, Davis Commodities recently entered a joint venture with a Malaysian agri-processing group to export 180,000 metric tons of food-use inputs annually to a major market in Northeast Asia. The initiative is projected to generate $117 million in its first year, with revenue expected to double to $234 million in the second.
To fund ongoing expansion efforts, Davis plans to raise $30 million through a new share issuance. The proceeds will support mergers and acquisitions, boost operational efficiency, and establish new regional offices.
However, the company has also received a non-compliance notice from Nasdaq after its share price fell below the minimum bid requirement. Davis Commodities has 180 days to regain compliance and is considering actions such as a reverse stock split to meet listing standards. The company affirmed its commitment to resolving the issue within the designated timeframe.
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