DigitalX has raised $20.7 million from leading global digital asset investors to expand its Bitcoin holdings and reinforce its position as a Bitcoin-focused investment manager.
- Raised $20.7 million via strategic placement led by Animoca Brands, UTXO Management, and ParaFi Capital
- Funds primarily allocated to expanding Bitcoin treasury holdings
- Strategic Advisory Board to include blockchain veterans Yat Siu and Hervé Larren
- Directors and related parties to participate subject to shareholder approval
- Post-placement Bitcoin and digital assets valued over $95 million
Strategic Capital Injection
DigitalX Limited (ASX, DCC) has announced a significant capital raise of approximately $20.7 million through a strategic placement involving heavyweight investors such as Animoca Brands, UTXO Management, and ParaFi Capital. This infusion of funds marks a pivotal moment for the Australian digital asset manager, underscoring a renewed and sharpened focus on Bitcoin as the cornerstone of its investment strategy.
The placement attracted participation from notable figures in the global crypto ecosystem, including Simon Gerovich, CEO of Tokyo Stock Exchange-listed Metaplanet Inc., who invested personally. The capital raise was conducted at a slight discount to the recent trading price, with new shares and warrants issued subject to shareholder approval.
Bitcoin Treasury Expansion
DigitalX plans to deploy approximately $19.7 million of the raised capital to bolster its Bitcoin treasury. Currently, the company holds 65 Bitcoins directly and an equivalent of 193 Bitcoins through its ASX-listed Bitcoin ETF (BTXX), collectively valued at around $43.3 million. Post-placement, DigitalX’s total assets in Bitcoin, digital assets, and cash are expected to exceed $95 million, reinforcing its position as a leading Bitcoin-focused fund manager in Australia.
This move reflects DigitalX’s long-term confidence in Bitcoin as a premier store of value and institutional-grade asset. Alongside expanding its treasury, the company will continue supporting its Bitcoin ETF and growing its Sell My Shares business, further entrenching its footprint in the digital asset space.
Strategic Advisory Board and Governance
To complement the capital raise, DigitalX intends to establish a Strategic Advisory Board featuring industry veterans Yat Siu, co-founder and Executive Chairman of Animoca Brands, and Hervé Larren, founder of US-based Web3 advisory firm Airvey.io. Both bring deep expertise and global networks in blockchain and digital assets, which are expected to provide invaluable strategic guidance focused on Bitcoin and investor relations.
UTXO Management, one of the strategic investors, will also have the right to nominate a non-executive director to DigitalX’s board, subject to approvals. This governance enhancement signals a commitment to strong oversight and alignment with leading digital asset investors.
Market and Industry Implications
DigitalX’s successful capital raise and strategic partnerships come at a time when institutional interest in Bitcoin continues to grow globally. The involvement of prominent players like Animoca Brands and ParaFi Capital not only provides capital but also validates DigitalX’s Bitcoin-first approach. The company’s leadership highlighted that this backing will help unlock new opportunities and deliver long-term shareholder value.
As the only ASX-listed crypto fund manager with a Bitcoin treasury strategy, DigitalX is positioning itself to capitalize on the evolving digital asset landscape in Australia and beyond. The company’s focus on institutional-grade custody and insurance, combined with its strategic advisory support, may well set a benchmark for other digital asset managers in the region.
Bottom Line?
DigitalX’s $20.7 million raise and strategic alliances set the stage for accelerated Bitcoin growth and deeper institutional integration.
Questions in the middle?
- How will the new advisory board influence DigitalX’s strategic decisions and market positioning?
- What impact will UTXO Management’s board nomination have on governance and future strategy?
- How will DigitalX balance expanding its Bitcoin treasury with growth in its ETF and Sell My Shares business?