DigitalX, Australia’s sole ASX-listed cryptocurrency fund, has successfully secured AU$20.7 million in funding from prominent players in the crypto space, including Animoca Brands, UTXO Management, and ParaFi Capital. The funding aims to strengthen DigitalX’s Bitcoin reserves and expand its operations within the growing cryptocurrency market.
Investors acquired shares at AU$0.074 each, with a unique incentive: for every two shares purchased, they received a warrant allowing the purchase of additional shares at AU$0.15 within the next 18 months. This strategic move not only boosts DigitalX’s capital but positions the company for further investment in Bitcoin.
A substantial portion of the raised funds, approximately AU$12.8 million, will be allocated explicitly for purchasing more Bitcoin, while the remainder will support general operational costs and future growth initiatives. This bold financial decision reflects DigitalX’s commitment to becoming a major player in the crypto market, capitalising on the increasing demand for Bitcoin.
To further enhance its strategic direction, DigitalX has welcomed Animoca co-founder Yat Siu and Web3 advisor Hervé Larren to its newly established advisory board. Their expertise is expected to provide invaluable guidance as the company looks to broaden its cryptocurrency portfolio.
Siu expressed Animoca’s confidence in Bitcoin, describing it as the “new digital gold” and a key reserve asset for the digital age. His remarks highlight Animoca’s dedication to bridging traditional finance with the innovative potential that Bitcoin offers. He stated:
> “Animoca Brands’ investment in DigitalX underscores our commitment to this vision. By leveraging our expertise in Web3 and DigitalX’s strong position in the Australian market, we aim to bridge traditional finance with the innovative potential of Bitcoin, setting new standards for accessibility and adoption in the region.”
On the back of this funding round, DigitalX’s shares surged by over 90%, hitting US$0.088 (AU$0.13), signalling strong investor confidence in the company’s future as it aims to solidify its footing in the competitive cryptocurrency landscape.
In summary, DigitalX’s recent capital raise positions it for substantial growth, leveraging partnerships with influential crypto figures and a clear strategy focused on expanding its Bitcoin holdings. With the backing of major industry players, DigitalX is poised to lead in the integration of cryptocurrency within Australia’s financial framework.
