In a significant move for the crypto asset management sector, DigitalX (DCC) has successfully secured 20.7 million Australian dollars ($13.5 million) from prominent investors to enhance its focus on Bitcoin (BTC). This funding round highlights the growing interest and confidence in Bitcoin as a formidable store of value.
The recent placement attracted substantial investments from well-known names in the cryptocurrency arena, including Animoca Brands, UTXO Management, and ParaFi Capital. Notably, individual contributions from influential executives have also played a crucial role in this funding round, with Simon Gerovich, President and CEO of Japan-listed Metaplanet, participating personally.
Metaplanet (3350) stands as the fifth-largest publicly traded entity holding Bitcoin in its treasury, currently possessing 15,555 BTC. This alignment of interests between DigitalX and Metaplanet illustrates a strong coalition amongst leading players in the crypto market.
DigitalX intends to allocate nearly 19.7 million Australian dollars ($12.9 million) from this recent injection of funds directly towards augmenting its Bitcoin treasury. This is a significant move considering the firm already maintains a position that includes 65 BTC held outright. Furthermore, DigitalX manages its own Bitcoin ETF, solidifying its commitment to this key digital asset.
With this capital infusion, DigitalX’s total assets in Bitcoin and other digital holdings are projected to exceed 95 million AUD following the placement. This growth trajectory underscores the company’s enduring belief in Bitcoin’s potential as a reliable store of value.
Previously listed as a Bitcoin mining company in 2014, DigitalX has steadily evolved into a major player in cryptocurrency management, advocating for the benefits of Bitcoin. In the recent placement, shares in DigitalX were issued at 7.4 Australian cents each, reflecting a slight discount to recent trading levels. Additional warrants will be made available pending shareholder approval, paving the way for potential further investment.
An immediate positive reaction was seen in the marketplace, as shares of DigitalX surged nearly 42% on Tuesday, surpassing the 11 Australian cents mark. This increase reflects not only investor confidence but also the buoyant outlook on the digital asset market.
As DigitalX continues to bolster its Bitcoin holdings, it sets a precedent for other firms in the crypto space, emphasizing the significance of strategic investment in digital currencies.
