DigitalX Acquires 18,944 Solana Tokens Worth $4.36M, Targets $350K Annual Revenue
DigitalX Limited has significantly increased its Solana token holdings, marking a strategic pivot to yield-generating digital assets through staking. The company aims to leverage this move to enhance recurring revenue and support blockchain ecosystem growth.
- Acquired additional 18,944 Solana tokens worth $4.36 million
- Total Solana holdings now 83,150 tokens
- Plans to stake Solana via BitGo with expected 7-9% annual yield
- Strategic shift from passive Bitcoin holdings to active yield generation
- Focus on growing recurring revenues and moving toward profitability
DigitalX Deepens Commitment to Solana
DigitalX Limited (ASX:DCC) has announced a substantial increase in its Solana (SOL) token holdings, acquiring nearly 19,000 additional tokens valued at approximately $4.36 million. This latest purchase brings the company's total Solana assets to 83,150 tokens, underscoring a clear strategic pivot from passive Bitcoin holdings to actively generating yield through staking.
Staking Strategy and Revenue Implications
The company plans to stake its expanded Solana position through BitGo, its institutional-grade custody provider. Based on current network yields, DigitalX expects an annualised return between 7% and 9%, translating to roughly $350,000 in additional revenue per year at current SOL prices. This approach aligns with DigitalX’s broader treasury strategy aimed at optimising yield and growing recurring income streams.
Supporting a Growing Blockchain Ecosystem
Interim CEO Demetrios Christou highlighted that this move reflects DigitalX’s commitment to not only maximise returns but also actively participate in a rapidly expanding blockchain ecosystem. Solana’s high-performance blockchain, known for its speed and scalability, offers staking opportunities that do not compromise token ownership or security, making it an attractive asset for DigitalX’s treasury.
Strategic and Market Context
DigitalX’s decision to increase its Solana exposure comes as part of a broader effort to transition towards profitability by leveraging blockchain technologies for additional value creation. The company’s history as Australia’s longest-standing publicly listed digital asset manager and its management of the country’s first ASX-listed spot Bitcoin ETF position it well to capitalise on emerging digital asset trends.
Looking Ahead
While the staking yields are promising, they remain subject to network conditions and SOL price volatility. DigitalX’s ongoing accumulation and staking strategy will be closely watched by investors seeking insight into the company’s path to sustainable revenue growth and active blockchain participation.
Bottom Line?
DigitalX’s growing Solana stake signals a new chapter in digital asset yield strategies, with profitability on the horizon.
Questions in the middle?
- How will fluctuations in Solana’s price and network yields impact DigitalX’s staking revenue?
- Will DigitalX continue to diversify its digital asset treasury beyond Solana and Bitcoin?
- What risk management measures are in place to safeguard staked assets amid market volatility?
