1 week Ago
SET-listed renewable energy developer SAAM Development is preparing to issue convertible bonds worth US$10 million (360 million baht) to support its new digital asset business, which is expected to generate 300 million baht in revenue this year. SAAM joined hands with partners to develop its digital asset investment plan, comprising Nakamoto Labs Co Ltd, a digital asset exchange, and FWX, a decentralised finance platform using artificial intelligence (AI) technology for risk management and decentralised trading. Phodduang Kongkamee, chief executive of SAAM, said the company aims to increase liquidity, generate long-term income and expand its capital market revenue base by preparing to issue $10 million in convertible bonds.
He said the company is preparing to enter the digital asset industry by being a liquidity provider for at least two digital asset exchanges regulated by the Securities and Exchange Commission, as well as FWX. "Entering the digital asset sector can add a new business model that can generate long-term income by creating a system to increase liquidity and basic services necessary for digital assets," said Mr Phodduang. Many Thai companies are still hesitant about digital assets, but SAAM is going full steam ahead and not limiting itself to cryptocurrency investment, instead hoping to be a system architect supporting the growth of a new capital market, he said.
"We are not entering this market to hold coins, but rather to build an infrastructure for digital assets in Thailand that will help the market grow and generate sustainable income, which is no different from investing in infrastructure such as electricity systems or water pipes in the real world," said Mr Phodduang. Offering liquidity in the digital asset market for those who place assets, both crypto and baht, on both sides of the trading board generates revenue from the difference in trading prices. When there are buyers and sellers, liquidity providers receive income from the price difference on each trading board.
When the price of crypto on many boards differs, liquidity providers can buy at a low price and sell at a higher price through an automatic system and collect fees from the trading board. The daily trading value of the digital asset trading centre in Thailand that SAAM can provide services to is worth more than 3 billion baht per day and is growing, said Mr Phodduang. Blockchain investor Poramin Insom, chief executive of Nakamoto Labs, has invested almost 100 million baht in FWX.
"This issuance of convertible debentures is not merely fundraising, but the beginning of a new structure that allows both investors and institutional partners to participate in a sustainable digital financial system," he said. There are people interested in investing in the company's convertible debentures. One group is Thai investors who have a background in crypto investment, and another is foreign investors, said Mr Poramin.
SAAM will invest in Bitcoin initially, but may add other cryptocurrencies after the conversion bond is issued in the second quarter this year, said Mr Phodduang. Chanon Jaratsuttikul, co-founder and chief executive of FWX, said the company is developing a trading infrastructure that can connect with institutional investors around the world. The company uses AI to help manage risks and increase trading efficiency under a decentralised system.
SAAM and Nakamoto Labs are laying a foundation to change the Thai financial market in the long run, said Udomsak Rakwongwan, co-founder of FWX and an advisor. For SAAM, this new business plan will not only spread risk from traditional businesses, but also create a new growth path that connects capital, technology and structure, helping to push Thailand towards a regional and global digital asset hub, said Mr Phodduang..
