Understanding the Market | DL HOLDINGS GP fell nearly 4% again, after a drop of over 15% yesterday, following the announcement of an 11% discount on the rights issue for existing shareholders

DL HOLDINGS GP fell nearly 4% again, after a sharp decline of over 15% yesterday. As of the time of writing, it is down 3.78%, trading at HKD 2.8, with a transaction volume of HKD 116 million. In terms of news, DL HOLDINGS GP recently announced plans to place a total of 255 million shares in a way that prioritizes existing shares over new ones, accounting for approximately 15.15% of the company's existing issued share capital and about 13.16% of the expanded issued share capital, with a placement price of HKD 3.05 per share, representing a discount of about 11.34% compared to the closing price of HKD 3.44 on October 20. The company has also entered into an agreement with the subscriber Evergreen Wealth Investment Limited to issue up to 63.803 million new shares at HKD 3.05 per share, accounting for approximately 3.18% of the expanded issued share capital. The net proceeds will total HKD 956 million, which the company will use to expand its Bitcoin mining and digital reserve business, develop and tokenize RWA products, and for strategic and diversified investments to support expansion in digital finance, virtual assets, and RWA tokenization business, as well as Bitcoin mining and related infrastructure development, enhancing asset construction and allocation capabilities, and strengthening recurring income sources