Bitcoin Holdings Expand: DigitalX Secures $13.5M Investment
DigitalX (DCC), Australia’s sole ASX-listed crypto fund manager, has successfully raised A20.7million(US13.5 million) from a consortium of prominent digital asset investors. This significant capital injection is primarily earmarked for expanding DigitalX’s Bitcoin holdings and establishing a new strategic advisory board. The placement, priced at A0.074(US0.048) per share, saw participation from key industry players including Animoca Brands, UTXO Management, and ParaFi Capital, signaling strong confidence in DigitalX’s Bitcoin-centric strategy.
Animoca’s Yat Siu Joins Strategic Advisory Board
Alongside the substantial capital raise, DigitalX has announced the formation of a new strategic advisory board, with Animoca Brands’ Executive Chairman, Yat Siu, and Web3 advisor Hervé Larren as inaugural members. In an interview, Siu revealed his prior investment in DigitalX and noted the unique position both companies once shared as ASX-listed entities navigating the evolving digital asset landscape. Their inclusion on the advisory board brings significant industry expertise and strategic guidance to DigitalX’s expanding operations.
Bitcoin as the “Original Onboarder” to Digital Assets
Yat Siu emphasized his view of Bitcoin as a fundamental gateway to the broader digital asset ecosystem. He stated, “We think everyone should hold some Bitcoin, if for no other reason than a hedge, and it’s most well understood as a store of value.” Siu believes that once individuals hold Bitcoin, either directly or indirectly, they are more likely to explore other tokens and expand their on-chain activity. This perspective positions Bitcoin not just as a store of value but as the “original onboarder” to the entire digital asset economy.
Unique Exposure for Australian Investors
DigitalX offers a unique avenue for Australian investors to gain exposure to Bitcoin. Siu highlighted that investing via superannuation funds (Australia’s equivalent of 401k) in ASX-listed companies like DigitalX provides a convenient way to access the most recognized digital asset class. He noted, “Due to DCC’s history, it is also, in effect, one if not the only way of really doing that: being the only ASX-listed company that is accumulating Bitcoin,” underscoring DigitalX’s distinct position in the Australian market.
The Growing Trend of Bitcoin Treasury Strategies
The move by DigitalX aligns with a growing global trend of companies adopting Bitcoin-heavy treasury strategies. This trend first gained significant traction after MicroStrategy began aggressively purchasing Bitcoin in August 2020, primarily through convertible debt offerings. Led by Michael Saylor, MicroStrategy has since become the largest corporate holder of Bitcoin, with over 597,000 BTC. Japan’s Metaplanet has followed a similar path, positioning itself as “Asia’s MicroStrategy” by acquiring Bitcoin through a combination of equity and planned debt raises, demonstrating the increasing mainstream acceptance of this corporate strategy.
Assessing Risks in Bitcoin Acquisition Methods
When questioned about the risks associated with companies adopting Bitcoin-heavy strategies, Yat Siu clarified that the risk level largely depends on how the assets are acquired. He stated, “In an equity raise, like this one, risk is fairly low. If it is debt, potentially higher, but it depends on what the security is.” This distinction highlights the importance of a company’s financial structure in mitigating potential risks associated with holding volatile digital assets. Siu also pointed out that while the “Bitcoin-on-balance-sheet” trend is growing and can attract attention, companies should be genuinely committed to the long-term vision rather than just seeking short-term publicity.
Bitcoin Remains at the Core of DigitalX’s Expanding Vision
DigitalX plans to use approximately $12.8 million from its recent capital raise to purchase additional Bitcoin, with the remainder allocated for operational costs and working capital. When asked if this capital raise marked the extent of DigitalX’s Bitcoin strategy, Yat Siu’s response was definitive: “Deeper. This is the beginning, not the end.” This statement signals a long-term commitment to expanding DigitalX’s Bitcoin holdings and its role in the digital asset ecosystem, positioning the company for continued growth and influence in the evolving cryptocurrency landscape.
Read more at: Bitcoin vs. Bitcoin Treasury Companies: Which Investment Reigns Supreme?
