DigitalX Allocates Nearly A$5M to Lime Street Fund, Holds 504.3 BTC Worth A$88.8M
DigitalX Limited has enhanced its treasury strategy by investing nearly A$5 million into a market-neutral fund while increasing its Bitcoin holdings to over 500 BTC, aiming to balance accumulation with steady income generation.
- A$4.96 million allocated to Lime Street Capital SPC fund managed by Digital Asset Funds Management
- Acquisition of an additional 2 Bitcoin, raising total holdings to 504.3 BTC valued at A$88.8 million
- Investment targets consistent free cash flow through algorithmic trading strategies
- Quarterly redemption of profit components expected to support operational costs and further Bitcoin purchases
- Strategy blends long-term Bitcoin accumulation with yield-generating treasury optimisation
DigitalX’s Strategic Treasury Move
DigitalX Limited, a prominent player in Australia's digital asset management space, has taken a significant step in executing its 21 Hundred Bitcoin strategy by allocating approximately A$4.96 million into the Lime Street Capital SPC - Digital Opportunities SP fund. This fund, managed by Australian firm Digital Asset Funds Management (DAFM), employs market-neutral, algorithmic trading strategies designed to generate consistent returns regardless of Bitcoin price fluctuations.
The move reflects DigitalX’s commitment to building a resilient and self-sustaining treasury. By diversifying its approach to capital management, the company aims to generate free cash flow that can be redeployed to support ongoing Bitcoin accumulation or offset operational expenses, thereby enhancing capital efficiency.
Bitcoin Holdings Continue to Grow
Alongside this investment, DigitalX has increased its Bitcoin holdings by an additional 2 BTC during October 2025, bringing its total to 504.3 BTC. Valued at approximately A$88.8 million as of late October, this accumulation underscores the company’s long-term bullish stance on Bitcoin as a core asset.
Funding for the recent Bitcoin purchase was sourced from available cash reserves and incremental yield generated from existing digital asset holdings, illustrating a disciplined approach to treasury optimisation that balances asset growth with income generation.
Market-Neutral Fund as a Complementary Strategy
The Lime Street Capital SPC fund’s market-neutral positioning is particularly noteworthy. Unlike traditional crypto investments that are directly exposed to Bitcoin’s price volatility, this fund aims to deliver risk-adjusted returns through sophisticated algorithmic trading, independent of market direction. This approach provides DigitalX with a steady income stream, which the company plans to redeem quarterly, smoothing cash flow and supporting operational flexibility.
DigitalX’s General Manager, Will Hamilton, emphasised the strategic rationale behind this dual approach, "By combining Bitcoin accumulation with income-generating strategies, we’re building a self-sustaining, resilient treasury that compounds value over time." This positions DigitalX as a leading ASX-listed entity offering institutional-grade Bitcoin exposure with an innovative treasury management framework.
Looking Ahead
As DigitalX continues to execute its treasury and accumulation strategies, investors will be watching closely to see how the free cash flow generated from the Lime Street Capital fund impacts the company’s ability to grow its Bitcoin holdings and manage operational costs. The company’s approach could serve as a model for balancing growth and income in the evolving digital asset landscape.
Bottom Line?
DigitalX’s blend of Bitcoin accumulation and yield generation sets the stage for a more resilient and cash-flow-positive future.
Questions in the middle?
- How will the Lime Street Capital fund’s actual performance compare to its historical track record?
- What are the risks if Bitcoin’s price experiences significant volatility despite the market-neutral fund’s strategy?
- Will DigitalX accelerate Bitcoin purchases using free cash flow generated from the fund?
