DigitalX’s Shift to Bitcoin Strategy Raises Questions on Market Risks

Strong Quarter for DigitalX Amid Strategic Shift

DigitalX Limited (ASX – DCC) has delivered a robust quarterly update for the period ending June 30, 2025, marked by significant growth in its digital asset treasury and a decisive pivot towards Bitcoin as the core of its investment strategy. The company’s digital asset holdings surged 32.8% to $72.9 million, reflecting both market appreciation and strategic asset accumulation.

Central to this growth is the DigitalX Bitcoin ETF (BTXX), which closed the quarter with $52.7 million in net assets under management, up 22.5% from the previous quarter and an impressive 90.65% since its July 2024 launch. This ETF offers investors a regulated, liquid avenue to gain Bitcoin exposure without the complexities of digital wallets, a factor that has driven increasing adviser and institutional interest.

Operational Improvements and Revenue Growth

DigitalX also reported a substantial improvement in its operating results, with losses (excluding certain non-cash expenses) narrowing by nearly 60% to $225,000 for the quarter. This was underpinned by stronger revenues, including brokerage fees and staking rewards, alongside disciplined expense management. The company’s revenue rose 52% quarter-on-quarter to $1.45 million, bolstered by the receipt of FY2023 R&D incentives and growing brokerage activity.

Capital Raising Fuels Bitcoin-First Treasury Strategy

Post-quarter, DigitalX executed a strategic placement raising approximately $20.7 million from prominent global digital asset investors such as Animoca Brands, UTXO Management, and ParaFi Capital. This capital injection has enabled a rapid increase in Bitcoin holdings, with the company boosting its Bitcoin treasury by 93.7% in July alone to nearly 500 BTC, valued at $91.3 million. This shift underscores DigitalX’s confidence in Bitcoin as the premier institutional-grade store of value and signals a clear strategic focus moving forward.

The company’s Bitcoin per share metric, measured in satoshis, rose 58% since June 30, offering shareholders a transparent gauge of value tied directly to Bitcoin exposure. This metric will be regularly updated, enhancing investor insight into the company’s treasury composition.

Board Changes and Corporate Governance

Alongside financial and strategic developments, DigitalX refreshed its leadership with the appointment of Leigh Travers as Non-Executive Chairman and Ieva Guoga as Non-Executive Director in May 2025. These changes followed the resignations of previous board members, including former Interim CEO Greg Dooley, signaling a new phase of governance aligned with the company’s evolving strategy.

DigitalX continues to build distribution channels for BTXX, with the ETF now accessible on major Australian wealth platforms such as Netwealth, HUB24, and Macquarie Wrap. The company’s diversified revenue streams, including its Sell My Shares platform, which saw a 15.8% revenue increase, further support its growth trajectory.

Overall, DigitalX’s June quarter report reflects a company transitioning from broad digital asset exposure to a focused Bitcoin-first approach, supported by strong operational execution and strategic capital raising.