DigitalX Secures $13.5 Million Funding Led by Animoca Brands for Bitcoin Expansion

DigitalX, an Australian digital asset investment manager, has successfully secured $13.5 million in funding from a group of digital asset investors. The investment round was led by Animoca Brands, with additional support from ParaFi Capital and UTXO Management. The capital raised will be primarily used to expand DigitalX’s Bitcoin holdings, with approximately $12.9 million allocated to the company’s treasury. The remaining funds will cover operational expenses, working capital, and transaction-related costs.

The investment round saw participants receive shares at A$0.074 (US$0.048) per unit, along with an incentive of one warrant for every two shares purchased. These warrants are exercisable at A$0.15 (US$0.10) and have an 18-month expiry period. This strategic placement not only bolsters DigitalX’s financial position but also underscores the growing confidence in Bitcoin as a core investment asset.

In conjunction with the funding, DigitalX has strengthened its leadership team by establishing a strategic advisory board. The initial appointees include Animoca Brands Executive Chairman Yat Siu and Web3 investor Hervé Larren. Siu, who has a longstanding association with DigitalX, highlighted the company’s unique position within Australia’s regulatory environment. He noted that DigitalX, being the only cryptocurrency fund manager listed on the Australian Securities Exchange (ASX), provides a regulated public market opportunity for investors to gain exposure to Bitcoin, including those with retirement portfolios.

The latest capital raise by DigitalX marks a significant shift in the company’s strategy, emphasizing Bitcoin as the foundation of its digital asset investments. According to the company, this move reflects a renewed focus on Bitcoin as a strategic asset. Siu, a strong advocate for Bitcoin’s role in digital asset portfolios, believes that holding Bitcoin serves as both a hedge and an entry point into the broader Web3 economy. He stated that once investors have Bitcoin, they can begin expanding into other tokens and on-chain assets.

This trend of incorporating Bitcoin into corporate treasuries is not new. It gained widespread attention when MicroStrategy initiated large-scale Bitcoin acquisitions in 2020, financed largely through convertible debt offerings. More recently, Japan’s Metaplanet has positioned itself as "Asia's MicroStrategy," with Bitcoin purchases funded by both equity and planned debt raises. While the strategy has its skeptics, Siu emphasized that the seriousness of such moves ultimately depends on whether companies are committing to the long term or simply capitalizing on market sentiment.

Yat Siu from Animoca Brands will advise DigitalX on its Bitcoin asset management approach. The funding will support DigitalX’s efforts to increase its Bitcoin reserves and expand blockchain ventures. The partnership aims to enhance DigitalX’s role in the growing digital asset and cryptocurrency market. The company operates the first ASX-listed spot Bitcoin exchange-traded fund, the DigitalX Bitcoin ETF and harnesses the power of blockchain technology to generate value to investors.

Animoca Brands advised the strategic placement. The capital injection was done by the company finding DigitalX as a partner and linking it to a consortium of strategic investors. The increase should strengthen DigitalX in the digital asset industry and help it pursue its plans of expanding its Bitcoin reserves. “We think that Bitcoin is the digital gold and reserve asset of the decentralized age,” according to Yat Siu, who is the co-founder and executive chairman of Animoca Brands. The new capital will enable DigitalX to increase its holdings of Bitcoin and build on its products that are grounded on blockchain investments.

The participation is likely to boost the market positioning of DigitalX and improve its strategic direction with the help of Siu. The involvement of Animoca Brands and Hervé Larren in the raise testifies to its interest in the expansion of the digital asset infrastructure in the Asia-Pacific region. As the advisors of the company, its part involved creating the transaction. They also introduced DigitalX to the relevant investors in digital assets. Additionally, they advised the overall positioning. The two companies have even more interest as Leigh Travers, the director of emerging markets at Animoca Brands, is the non-executive chair of DigitalX.

The partnership will use Animoca’s experience in digital property rights and blockchain innovations. This will support the investment strategies of DigitalX. According to Siu, the investment by Animoca Brands in DigitalX bolsters their shared belief in Bitcoin. He described it as the decentralized economy’s super asset. A larger Bitcoin treasury and the advisory services provided by Animoca Brands are potential strengths that can see DigitalX take advantage of the changing opportunities in the field of the digital asset market.