Australian Crypto Asset Manager DigitalX Secures Over $13M to Expand Bitcoin Holdings
DigitalX (DCC), an Australian crypto asset manager, has secured AU$20.7 million (approximately US$13.5 million) in a funding round to bolster its bitcoin (BTC) holdings. This significant investment underscores the growing institutional interest in Bitcoin as a store of value. The funding round saw participation from prominent investors including Animoca Brands, UTXO Management, and ParaFi Capital, alongside contributions from several key figures within the cryptocurrency industry. Among these individual investors is Simon Gerovich, President and CEO of Metaplanet, a publicly traded company with a substantial Bitcoin treasury.
Metaplanet’s involvement highlights the confidence major players have in DigitalX’s strategy. Metaplanet currently holds 15,555 BTC, making it one of the largest publicly traded companies with Bitcoin holdings. This investment further solidifies DigitalX’s position in the market.
DigitalX intends to allocate approximately AU$19.7 million (US$12.9 million) of the raised capital directly into expanding its own Bitcoin treasury. Currently holding 65 BTC, this injection will significantly increase DigitalX’s Bitcoin assets. This strategic move reinforces the company’s long-held belief in Bitcoin’s potential as a secure and valuable asset.
The company also manages its own Bitcoin ETF, demonstrating a commitment to providing investors with exposure to the cryptocurrency market. Following this funding round, DigitalX’s total assets in Bitcoin and other digital holdings will surpass AU$95 million. The company, originally listed in 2014 as a Bitcoin mining firm, has transitioned into a prominent player in the broader crypto asset management space.
The placement saw shares issued at AU$0.074 each, slightly below recent market prices, with additional warrants offered subject to shareholder approval. This strategic move was met with positive market response, resulting in a nearly 42% increase in DigitalX’s share price on Tuesday, reaching over AU$0.11. This significant share price jump reflects investor confidence in DigitalX’s future prospects and its commitment to Bitcoin. The influx of capital positions DigitalX for further growth and expansion within the evolving cryptocurrency landscape.
