In an effort to increase its market share in Thailand’s digital asset services industry, media, advertising, and event management company DV8 Public Company Limited announced a strategic acquisition of Rakkar Digital Company Limited.
DV8 has signed a share purchase agreement to purchase all of Rakkar Digital’s common shares. Rakkar Digital is a licensed provider of digital asset custodial wallet services that is overseen by the Securities and Exchange Commission (SEC).
Rakkar Digital will become a wholly-owned subsidiary of DV8 Public upon completion of the transaction, subject to regulatory approvals and the fulfillment of all conditions precedent outlined in the agreement, according to a regulatory filing from DV8.
The document states that DV8 intends to provide Rakkar Digital with an additional investment of up to THB 100 million, or roughly $2.7 million.
The purpose of this funding is to support the business’s operations and assist it in meeting the net capital requirements set forth by the SEC for operators of licensed digital asset businesses.
DV8’s internal working capital will be used to finance the acquisition and the ensuing capital infusion.
After the deal is finalized, DV8 will be able to broaden its service offerings into digital asset custody, a crucial infrastructure area as Thailand’s digital finance industry develops.
Rakkar Digital provides custodial wallet services that safely store and manage clients’ digital assets in Thailand’s emerging but rapidly expanding digital asset ecosystem.
Rakkar’s core competencies are in line with growing institutional and retail interest in cryptocurrencies and digital assets. Rakkar is licensed by the Ministry of Finance and subject to SEC regulation.
The investment demonstrates DV8’s plan to expand beyond its current business segments and take advantage of Thailand’s growing need for regulated digital asset infrastructure.
Owning a licensed custodian puts DV8 in a potentially advantageous position as the Thai market grows more open to digital asset trading, custody, and blockchain-enabled financial services, according to the filing.
The Thai SEC must still approve the deal before the business can officially take over Rakkar Digital.
Three DV8-selected appointees will make up Rakkar Digital’s board of directors following the acquisition.
Theng Wei Tan, Kittiwut Horthong, and Jason Kin Hoi Fang are the directors listed in the document.
As part of the company’s responsibilities under Thai digital asset licensing requirements, these appointments will also be subject to SEC approval.
