DigitalX Secures $13.5 Million to Expand Bitcoin Strategy
Australian digital asset firm DigitalX has successfully raised A$20.7 million, equivalent to US$13.5 million, in a recent funding round aimed at strengthening its commitment to a “Bitcoin-first” strategy.
Plans for Growth in Bitcoin Holdings
The ASX-listed company intends to utilize the funds primarily to enhance its Bitcoin treasury. Esteemed investors such as Animoca Brands, UTXO Management, and ParaFi Capital have shown their support for DigitalX.
Of the A$20.7 million raised, approximately A$19.7 million (or US$12.8 million) will be dedicated to increasing its Bitcoin acquisitions, while the remaining amount is earmarked for operational costs and general offerings.
In conjunction with this capital influx, DigitalX has expanded its advisory board by appointing Yat Siu, co-founder of Animoca Brands, and Hervé Larren, CEO of Airvey.io. Their extensive experience in the crypto realm is expected to provide valuable insights regarding Bitcoin strategy and investor relations.
This latest move solidifies DigitalX’s role as a significant entity driving the adoption of institutional crypto in Australia.
Emphasizing a Bitcoin-Centric Strategy
DigitalX’s recent actions reflect the strategies of global Bitcoin leaders, such as MicroStrategy and Japan’s Metaplanet, both recognized for aggressively accumulating Bitcoin.
Since its listing on the ASX in 2014 as a Bitcoin mining company, DigitalX has regarded Bitcoin as a central asset on its balance sheet. Currently, the firm directly holds 65 BTC, in addition to 881,000 units of its Bitcoin ETF (BTXX), which amounts to roughly 193 BTC. Overall, this positions their Bitcoin assets at an estimated value of US$43.3 million.
The placement of shares, priced at A$0.074 (around US$0.048) each, was well-received by both institutional and strategic investors. Notably, Simon Gerovich, the CEO of Metaplanet, participated personally in this funding round.
Support from such significant players in the crypto industry underscores the growing confidence in Bitcoin as a sustainable store of value, signaling a broader trend toward more regulated and transparent avenues for engaging with digital assets.
Enhanced Credibility and Market Position
Interim CEO Demetrios Christou labeled this investment a “significant milestone,” emphasizing that the capital raised, along with the backing from respected Bitcoin advocates, will aid DigitalX in maintaining its focus on its strategic goals while creating lasting value for shareholders.
Yat Siu articulated that Bitcoin is “the reserve asset of Web3 digital gold,” positioning DigitalX as a top option for Australian investors looking for exposure to this asset.
With this recent funding round, DigitalX aims not only to augment its Bitcoin portfolio but also to reinforce its stature as a regulated entity on the ASX, serving as a bridge for both institutional and retail investors interested in entering the Bitcoin market.
