VCI Global Secures US$51 Million Convertible Note Financing to Expand Sovereign AI Infrastructure and Launch Bitcoin Treasury Reserve

Rhea-AI Summary

VCI Global (NASDAQ: VCIG) has secured a US$51 million convertible note financing to expand its Sovereign AI Infrastructure and establish a Bitcoin treasury reserve. The financing includes a strategic allocation of US$20 million for Bitcoin acquisition as part of the company's digital treasury reserve strategy.

The convertible note features a floor conversion price of US$1.20 per share, designed to minimize dilution. The remaining funds will be used to deploy full-stack Sovereign AI Infrastructure across Southeast Asia, incorporating military-grade encryption technologies, and provide working capital for expansion in cybersecurity, AI, and fintech sectors.

The company's strategy aligns with market projections showing the global AI infrastructure market reaching US$422.5 billion by 2030, while institutional interest in digital assets continues to grow, with over 80% of institutional investors favoring digital assets in diversified portfolios.

Positive

• Secured substantial US$51 million convertible note financing
• Strategic allocation of US$20 million to Bitcoin as treasury reserve
• Non-dilutive structure with US$1.20 floor conversion price
• Expansion into high-growth AI infrastructure market projected at US$422.5B by 2030
• Implementation of advanced military-grade encryption technologies

Negative

• Significant exposure to volatile Bitcoin market through US$20M allocation
• Potential future dilution if stock trades above conversion price
• High execution risk in implementing complex sovereign AI infrastructure

Insights

Financial Strategist

VCI Global's $51M raise combines AI infrastructure expansion with Bitcoin treasury strategy, signaling strategic pivot toward digital sovereignty and asset diversification.

VCI Global's $51 million convertible note financing represents a strategic inflection point for the company. The structure includes a $1.20 per share floor price, protecting against excessive dilution while providing substantial capital. What's particularly noteworthy is the dual allocation strategy: $20 million earmarked for Bitcoin acquisition alongside investment in Sovereign AI Infrastructure.

This financing approach reflects sophisticated treasury management thinking. By allocating ~39% of proceeds to Bitcoin, VCI is implementing a digital reserve strategy similar to what we've seen from MicroStrategy and Block, positioning themselves as an early institutional adopter in Southeast Asia. The $1.20 conversion floor represents confidence in maintaining share value above current levels.

The capital structure diversification into Bitcoin serves multiple functions: it provides potential inflation protection, establishes a liquid reserve asset with 24/7 market access, and signals technological forward-thinking to investors and clients. For a company building sovereign-ready digital infrastructure, adding a censorship-resistant, borderless monetary asset to its balance sheet creates strategic alignment between its business model and treasury management.

What's most significant here is how VCI is positioning at the intersection of two high-growth markets – the AI infrastructure space (projected to reach $422.5 billion by 2030) and institutional digital asset adoption. By combining these strategies rather than pursuing them separately, VCI is creating a differentiated market position that could resonate with both technology and financial investors seeking exposure to multiple emerging trends through a single equity.

US$20 Million to Be Allocated to Bitcoin | US$1.20 Floor Price Ensures Minimal Dilution

KUALA LUMPUR, Malaysia, Aug. 14, 2025 (GLOBE NEWSWIRE) -- VCI Global Limited (NASDAQ: VCIG) (“VCI Global” or the “Company”), a cross-sector platform builder integrating deep technology with financial architecture to enable sovereign-ready digital ecosystems, today announced a convertible note financing facility of up to US$51 million. This capital will support the rollout of its Sovereign AI Infrastructure and includes a strategic allocation of US$20 million into Bitcoin as part of the Company’s newly introduced digital treasury reserve strategy.

Structured with a floor conversion price of US$1.20 per share, the note represents a non-dilutive, value-preserving instrument that equips the Company with the necessary capital to execute its vision without compromising long-term shareholder interests.

Proceeds from the financing will be strategically allocated across three focus areas:

• US$20 million to gradually acquire Bitcoin as a digital reserve asset, reinforcing treasury diversification and long-term capital resilience.
• Deployment of full-stack Sovereign AI Infrastructure across Southeast Asia, integrating military-grade and quantum-resistant encryption technologies. This includes secure and immutable data storage, encrypted AI GPU and CPU servers with PCIe encryption cards, secure communicator devices, and SIM-layer encryption to safeguard mobile data sovereignty. The stack also features encrypted GPU compute, quantum-resistant storage, and zero-trust network architecture designed for institutional and governmental requirements.
• Working capital to expand VCI Global’s presence in cybersecurity, AI, and fintech, targeting high-growth opportunities in enterprise and sovereign markets.
  

The move is underpinned by favourable market tailwinds. According to Grand View Research, the global AI infrastructure market is expected to reach US$422.5 billion by 2030, driven by rising demand for secure, scalable AI compute environments. Meanwhile, institutional appetite for digital assets continues to surge. A recent Fidelity Digital Assets study revealed that over 80% of institutional investors believe digital assets should be part of a diversified investment portfolio. VCI Global’s dual-pronged strategy, combining sovereign AI infrastructure with Bitcoin-backed treasury innovation, positions it at the intersection of these high-growth, converging markets.

“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 that represents independence, resilience, and decentralization,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.

About VCI Global Limited

VCI Global is a cross-sector platform builder integrating deep technology with financial architecture to enable sovereign-ready digital ecosystems. Evolving from its roots in capital markets consultancy, the company now operates across fintech, AI, robotics, and cybersecurity.

Its mission is to empower governments, enterprises, and institutions, particularly in Southeast Asia, to scale securely, intelligently, and independently. At the core of its latest innovations is a sovereign AI data platform fortified by proprietary military-grade encryption, built to meet the highest standards of digital sovereignty, national security, and enterprise resilience.

For more information on the Company, please log on to https://v-capital.co/. 

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These forward-looking statements are based only on our current beliefs, expectations, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission (“SEC”). The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

CONTACT INFORMATION:

For media queries, please contact:

VCI GLOBAL LIMITED
enquiries@v-capital.co

FAQ

What is the size of VCI Global's convertible note financing announced in August 2025?

VCI Global secured a US$51 million convertible note financing with a floor conversion price of US$1.20 per share.

How much is VCIG investing in Bitcoin as part of their treasury strategy?

VCI Global is allocating US$20 million to gradually acquire Bitcoin as part of their digital treasury reserve strategy.

What is the conversion price floor for VCIG's convertible note?

The convertible note has a floor conversion price of US$1.20 per share, designed to minimize shareholder dilution.

What are the main uses of funds from VCIG's US$51M financing?

The funds will be used for: 1) US$20M Bitcoin acquisition, 2) Deployment of Sovereign AI Infrastructure across Southeast Asia, and 3) Working capital for expansion in cybersecurity, AI, and fintech.

What is the projected size of the AI infrastructure market by 2030?

According to Grand View Research, the global AI infrastructure market is expected to reach US$422.5 billion by 2030.

What technology features are included in VCI Global's Sovereign AI Infrastructure?

The infrastructure includes military-grade encryption, quantum-resistant storage, encrypted AI GPU/CPU servers, secure communicator devices, SIM-layer encryption, and zero-trust network architecture.