Tap Global Group (LSE:TAP), the AIM-listed digital finance app combining money, payments and crypto settlement services, has adopted a Digital Asset Income Strategy (DAIS) to generate yield on a growing reserve of digital assets.
The strategy will run through Tap Earn, the group's existing programme, which has produced an annualised gross yield of approximately 7% on committed capital to date, including on the Company's own treasury holdings.
The reserve will be funded from Tap's existing cryptoassets, valued at £1.75 million as of 30 June, plus surplus cash from operations and occasional equity issuances, with any material expansion requiring shareholder approval.
Board and senior management remain locked in over roughly 63% of issued share capital until March 2029, with open-market sales barred thereafter, and a monthly RNS report will disclose holdings, flows and yield generated.
"With no income, a passive treasury becomes working capital in a drawdown. An income-generating treasury does not," said Arsen Torosian, Group CEO and co-founder.
He pointed to Bitcoin trading more than 30% below its October 2025 all-time high of $126,198 as the entry point for building the reserve, contrasting Tap's approach with passive UK treasury vehicles created during last year's rally that now trade below net asset value or have been wound down.
Yield will first cover the Group's operating costs, with the aim of eventually freeing fintech revenue, from trading fees, card interchange, FX and subscriptions, for reinvestment in growth.
A policy document will govern deployment limits, leverage, counterparties and custody, with a summary to be published on the Company's website in the near future.
News Intelligence what this means for the company
Tap Global is deploying its £1.75m crypto treasury and surplus operating cash through Tap Earn to generate yield rather than hold assets passively, targeting 7% annualised gross returns to cover operating costs before freeing fintech revenue for growth. The move positions the company to benefit from Bitcoin's current discount to its October 2025 peak, but the strategy's success depends entirely on Tap Earn's ability to sustain its historical yield while managing the counterparty and custody risks inherent in yield farming.
The income strategy addresses a real cash-burn problem—passive reserves drain working capital—but it also concentrates execution risk: Tap Earn's 7% yield must hold, counterparty risk must remain contained, and the £2.15m combined cash and crypto base is small relative to the operating costs it must cover. Shareholder approval gates material reserve expansion, limiting upside without board consensus.
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