SET-listed Gulf Energy Development, Thailand's biggest private power producer by market value, has concluded a deal to invest in a digital asset exchange service of the US-based Binance.US through seed funding of an unspecified amount as it continues to grow its digital technology business.
The company invested in series seed preferred stocks issued by BAM Trading Services Inc, the operator of a regulated digital asset exchange under Binance.US in the US.
The value of the investment, made through Gulf's subsidiary Gulf International Investment (Hong Kong), was not disclosed.
Established in 2019, Binance.US is licenced to operate in 45 states and seven territories, with services scheduled to be available across the country by the end of 2022.
Binance.US will use the proceeds from the seed funding to expand headcount, support the return of investment-based marketing, expand its product portfolio as well as make potential future acquisitions.
It also planned fundraising through an initial public offering (IPO) in the next 2-3 years.
"The investment in Binance.US not only provides an opportunity for Gulf to participate in one of the fastest-growing digital exchange services in terms of users, but we will also realise higher investment value after the IPO," said Yupapin Wangviwat, Gulf's chief financial officer.
Gulf plans to allocate capital spending worth 100 billion baht over the next five years, with 75% of the budget for electricity generation capacity expansion, 10% for infrastructure development, 10% for gas business and the remaining 5% for digital business.
Land and Houses Securities has a favourable view of Gulf's deal, considering it a positive development in the local digital asset business and a boon for Gulf's long-term business strategy as it is expected to benefit from increased investment value after Binance.US is listed on the stock exchange.
In addition to the positive sentiment from the deal, Gulf also has a strong earnings prospect this year, spurred by prospective revenues from its investment in independent power producers that are expected to start operation this year and full-year profit from Intouch Holdings.
