DigitalX Hits First Cash Flow Positive Quarter and Launches Major Share Buy-Back

Milestone Quarter Marks Shift to Sustainable Cash Flow

DigitalX Limited (ASX:DCC) has crossed a critical financial threshold, delivering its first ever cash flow positive quarter for the three months ending 30 June 2026. This breakthrough reflects a combination of disciplined cost control, steady revenue growth from its flagship Sell My Shares platform, and strategic treasury management.

The company’s cash and cash equivalents edged up slightly to $23.5 million, underscoring a strengthened balance sheet that supports its next phase of growth and capital deployment. Operating cash inflows of $300,000 reversed prior quarters’ outflows, highlighting the tangible impact of the Company’s strategic reset over the past year.

Sell My Shares Powers Revenue Momentum

Sell My Shares (SMS), DigitalX’s online equities selling platform, continued its upward trajectory with record unaudited FY26 revenue of approximately $2.89 million. June saw the highest monthly transaction volume ever, exceeding 1,200 trades, driven by growing market awareness and operational enhancements including AI-driven customer support and fraud detection.

This business unit has become a key contributor to DigitalX’s operating performance, providing a consistent and scalable revenue stream that complements its digital asset investment activities. The recent acquisition of the sellmyshares.com domain aims to bolster SMS’s online presence and guard against fraud, potentially paving the way for expansion into additional markets.

Bitcoin Treasury Strategy Evolves with Market-Neutral Approaches

DigitalX maintained a strategic Bitcoin treasury of approximately 364 BTC at quarter-end, valued at around $14.5 million. Shortly after the reporting period, the company sold 80 Bitcoin for roughly $7.07 million, retaining a core holding of over 283 BTC alongside a cash buffer exceeding $30 million. This balance allows DigitalX to preserve meaningful Bitcoin exposure while enhancing liquidity and financial flexibility.

The Company is actively progressing market-neutral Bitcoin yield strategies designed to generate attractive risk-adjusted returns without sacrificing long-term exposure. Two such strategies have been shortlisted, aiming to mitigate exchange, counterparty, and tax risks while boosting returns from existing digital assets.

On-Market Share Buy-Back Signals Confidence in Undervalued Stock

In a move that underscores confidence in its intrinsic value, DigitalX announced an on-market buy-back of up to 120.4 million shares, representing the maximum allowed under the Corporations Act. The buy-back commenced in mid-July and has already acquired approximately 75% of the approved volume at an average discount of around 35% to net asset value, and roughly 65% below the last capital raising price.

This capital management initiative aims to directly increase per-share value for remaining shareholders and reflects the Board’s view that the shares are trading well below their underlying worth. The program remains flexible, with the Company reserving the right to suspend or terminate based on market conditions and strategic priorities.

Strategic Investment Program and Corporate Changes

DigitalX continues to pursue a disciplined $30 million Investment and Acquisition Program targeting emerging technologies and complementary digital infrastructure businesses. While no material transactions were announced this quarter, management remains cautious and will update shareholders if opportunities arise.

On the corporate front, the Company appointed Olga Smejkalova as Company Secretary, replacing Mark Licciardo. Ms Smejkalova brings extensive governance and compliance experience, having worked closely with the Board over the prior year.