DigitalX Raises A$20.7 Million to Expand Bitcoin Holdings

DigitalX, Australia’s sole ASX-listed crypto fund manager, has successfully raised A$20.7 million (US$13.5 million) from a group of digital asset investors. This funding will be used to expand the company's Bitcoin holdings and establish a new strategic advisory board. The placement was priced at A$0.074 (US$0.048) per share and attracted participation from notable investors including Animoca Brands, UTXO Management, and ParaFi Capital. Investors received one warrant for every two shares, exercisable at A$0.15 (US$0.10) and expiring in 18 months. Out of the total funds raised, $12.8 million will be allocated to purchasing additional Bitcoin, while the remaining amount will cover operational costs and working capital.

In conjunction with the capital raise, DigitalX has appointed Animoca’s Executive Chairman, Yat Siu, and Web3 advisor Hervé Larren to its newly formed advisory board. Siu, who was previously an investor in DigitalX, highlighted the strategic importance of the company in the Australian market. He noted that DigitalX provides a unique opportunity for investors to gain exposure to Bitcoin through their superannuation funds, which are equivalent to 401k plans in other regions. Siu views Bitcoin as a gateway to the broader digital asset ecosystem, emphasizing its role as a store of value and a hedge against market volatility. He believes that holding Bitcoin can lead to increased on-chain activity and exposure to other digital assets.

Siu also discussed the risks associated with companies adopting Bitcoin-heavy strategies. He noted that the level of risk depends on how the assets are acquired. In an equity raise, the risk is relatively low, whereas debt financing could pose higher risks depending on the security involved. The trend of companies adding Bitcoin to their balance sheets gained traction after Strategy began aggressively purchasing Bitcoin in August 2020. Led by Michael Saylor, the firm has 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.

Siu emphasized that the trend of putting Bitcoin on the balance sheet is a marketing strategy, similar to other trends in the market. He advised investors to look for companies that have true expertise in Bitcoin and are serious about their long-term strategy. Siu believes that the current capital raise is just the beginning of DigitalX’s Bitcoin strategy, indicating that the company plans to deepen its involvement in the digital asset space. He views Bitcoin as the “original onboarder” to the digital asset economy and encourages everyone to hold some Bitcoin as a hedge and a store of value.