DigitalX Raises A$20.7 Million for Bitcoin Expansion
Australian digital asset manager DigitalX has successfully secured A$20.7 million (USD $13.5 million) in a strategic funding round aimed at bolstering its Bitcoin treasury. The funds will primarily be allocated towards direct Bitcoin purchases, signaling a strong commitment to a Bitcoin-first approach in its asset management strategy.
Allocation and Investment Strategy
Of the total funds raised, approximately A$19.7 million (USD $12.8 million) will be directed towards enhancing Bitcoin holdings, while the remaining amount will serve operational costs and offering expenses. The funding comes from notable crypto investors including Animoca Brands, UTXO Management, and ParaFi Capital.
Additionally, DigitalX has expanded its strategic advisory board with the recent appointments of Yat Siu, co-founder of Animoca Brands, and Hervé Larren, CEO of Airvey.io. Their expertise in cryptocurrencies and digital assets is expected to provide valuable insights into Bitcoin strategies and investor relations.
Aligning with Global Bitcoin Leaders
This latest initiative aligns DigitalX with prominent global Bitcoin advocates such as MicroStrategy and Japan’s Metaplanet, both of which are recognized for their aggressive Bitcoin accumulation strategies. DigitalX has retained Bitcoin as a foundational asset since its ASX listing in 2014 as a Bitcoin miner.
Currently, the firm directly holds 65 BTC and approximately 881,000 units of its Bitcoin ETF (BTXX), which equates to around 193 BTC, totalling an estimated Bitcoin position valued at approximately USD $43.3 million.
The investment priced at A$0.074 (USD $0.048) per share, combined with attached warrants, has garnered significant interest from institutional and strategic investors, underscoring the growing confidence in Bitcoin as a long-term store of value.
Long-Term Value Creation
Interim CEO Demetrios Christou described the investment as a pivotal step, emphasizing that the support from respected Bitcoin advocates will help DigitalX maintain focus on its strategy, ultimately creating long-term value for shareholders. Yat Siu further referred to Bitcoin as “the reserve asset of the digital gold of Web3,” affirming that DigitalX represents a prime opportunity for Australian investors looking to engage with this asset class.
With this funding, DigitalX not only aims to bolster its Bitcoin holdings but also reinforces its position as a regulated, ASX-listed conduit for both institutional and retail investors seeking to capitalize on Bitcoin’s potential.
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