Bitcoin News Today: DigitalX Boosts Bitcoin Holdings to $91.3M After $13.5M Capital Raise

DigitalX, Australia’s sole ASX-listed cryptocurrency fund manager, has significantly expanded its Bitcoin treasury by purchasing 74.7 BTC for $8.8 million, marking a key step in its strategic allocation of corporate assets. The transaction, executed at an average price of $117,293 per Bitcoin, brings the company’s total Bitcoin holdings to 499.8 BTC, valued at approximately $91.3 million. This includes 306.8 BTC held directly and 193 BTC through its DigitalX Bitcoin ETF. The purchase follows a previous acquisition of 57.5 BTC earlier this month, reinforcing the firm’s commitment to positioning Bitcoin as the cornerstone of its treasury portfolio.

The company’s treasury now exceeds $100 million, driven by a $13.5 million capital raise conducted this month. Of this, $12.8 million was allocated to Bitcoin purchases, while the remaining funds will support operations and working capital. The capital raise also facilitated the formation of a strategic advisory board, including Yat Siu of Animoca Brands and Web3 advisor Hervé Larren. Leigh Travers, DigitalX’s non-executive chairman, emphasized the firm’s long-term vision: “Our strategy is simple: acquire and hold Bitcoin as our primary treasury reserve asset. We’ll continue accumulating this year and beyond.” Travers reiterated that the company has no interest in other cryptocurrencies, stating, “Bitcoin is the king.”

This move aligns DigitalX with a broader trend of firms adopting Bitcoin as a strategic asset. The strategy was pioneered by MicroStrategy, now known as Strategy, which began aggressive Bitcoin accumulation in 2020. Strategy’s CEO, Michael Saylor, has since acquired over 597,000 Bitcoin, establishing the company as the largest corporate holder. Similarly, Japanese firm Metaplanet has drawn comparisons to Strategy for its Bitcoin-focused approach, though such examples remain relatively niche in the corporate sector. DigitalX’s decision reflects growing confidence in Bitcoin’s role as a hedge against macroeconomic uncertainties and a store of value.

Travers highlighted the rationale for focusing exclusively on Bitcoin, noting the competitive landscape for alternative cryptocurrencies. “Ethereum and other altcoins function as digital oil or utility tokens, competing with many other platforms,” he said. By concentrating its treasury on Bitcoin, DigitalX aims to secure long-term stability. The company’s strategy also includes plans for future Bitcoin purchases, with Travers stating that “the goal is to be around in 10 years with a growth pathway with high certainty.”

The shift toward Bitcoin treasuries is not confined to crypto-native firms. Publicly traded companies across diverse sectors are increasingly recognizing Bitcoin’s potential as a strategic asset. However, such moves remain controversial, particularly in industries where energy consumption is a concern. DigitalX’s approach, however, avoids these debates by adhering strictly to Bitcoin as a core holding. The company’s latest acquisition underscores its alignment with a growing but still-evolving corporate strategy, one that prioritizes Bitcoin’s perceived resilience and long-term value over traditional assets.