VCI Global secures $51 million convertible note, allocates $20 million to bitcoin

KUALA LUMPUR - VCI Global Limited (NASDAQ:VCIG), a company currently trading below its InvestingPro Fair Value with impressive gross margins of 54%, announced Thursday it has secured a convertible note financing facility of up to $51 million to support the rollout of its Sovereign AI Infrastructure and implement a digital treasury reserve strategy.

The company plans to allocate $20 million from the financing to gradually acquire bitcoin as part of its treasury diversification approach. The remainder will fund the deployment of its AI infrastructure across Southeast Asia and provide working capital for expansion in cybersecurity, AI, and fintech sectors. According to InvestingPro data, VCI Global maintains a strong financial position with a healthy current ratio of 9.36 and more cash than debt on its balance sheet.

The convertible note includes a floor conversion price of $1.20 per share, which the company described as a "non-dilutive, value-preserving instrument" in its press release statement.

"Data sovereignty and monetary sovereignty are converging. As we build infrastructure to safeguard national intelligence and encrypted data flows, we believe Bitcoin belongs on our balance sheet, not just as a hedge, but as a core monetary asset," said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global.

The company’s AI infrastructure incorporates military-grade and quantum-resistant encryption technologies, including secure data storage, encrypted servers, secure communicator devices, and SIM-layer encryption.

VCI Global cited market research indicating the global AI infrastructure market is expected to reach $422.5 billion by 2030, while noting that institutional interest in digital assets continues to grow.

The company describes itself as a cross-sector platform builder integrating deep technology with financial architecture to enable sovereign-ready digital ecosystems, with operations across fintech, AI, robotics, and cybersecurity. The company has demonstrated strong execution with 37% revenue growth in the last twelve months. For deeper insights into VCI Global’s financials and growth prospects, including 15+ additional ProTips, visit InvestingPro.

In other recent news, VCI Global Limited announced the acquisition of V Capital Fund Management Limited, a fund management firm licensed by the Labuan Financial Services Authority. This acquisition provides VCI Global with immediate access to a regulated asset management framework in Labuan, Malaysia. Additionally, VCI Global’s portfolio company, QuantGold Data Group Limited, acquired Secure Encryption Storage Limited, an encryption hardware company with 129 patents, granting VCI Global exclusive distribution rights for SES’s products in certain Southeast Asian regions. In leadership changes, VCI Global appointed Dr. Chan Wai Mun as Chief AI & Data Officer to enhance its AI and data capabilities. Dr. Chan brings extensive experience from previous roles at Intel and GfK, a division of NielsenIQ. Furthermore, Jane Teh was named Chief AI Security Officer, bringing over 20 years of cybersecurity experience. She will lead efforts to implement security frameworks across VCI Global’s platforms. These developments reflect VCI Global’s strategic moves in expanding its technological and financial capabilities.

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