DigitalX Surges with $10.3M Capital Raise and 67% Bitcoin ETF Growth

Strong Revenue Growth and Capital Expansion

DigitalX Limited (ASX:DCC) closed out 2024 with a robust quarterly report, showcasing a 15% increase in revenues primarily driven by staking activities and performance fees. The company’s strategic capital raising efforts culminated in a $10.3 million private placement, supplemented by a rights issue targeting an additional $5.09 million, underscoring investor confidence in DigitalX’s growth trajectory.

The capital raised was largely deployed into expanding the company’s digital asset treasury, notably through a significant investment in Solana. This move not only diversified DigitalX’s holdings but also positioned the company to generate yield through staking, with Solana assets expected to earn between 7% and 9% annually.

DigitalX Bitcoin ETF Outperforms Market Benchmarks

The DigitalX Bitcoin ETF (BTXX), launched in July 2024, surpassed $50 million in funds under management by the end of the quarter. The ETF delivered an impressive 67.4% return over the quarter and nearly 80% since inception, significantly outperforming traditional asset classes such as bonds, equities, and commodities during the same period. This performance has positioned BTXX as the top-performing Australian-listed crypto ETF in late 2024, according to the Australian Financial Review.

Alongside BTXX, the actively managed DigitalX Fund also posted strong gains, rising 44.7% for the quarter. These results reflect the company’s adept management of digital assets amid a maturing regulatory landscape and growing institutional interest.

Strategic Appointments and Corporate Developments

To support its expanding operations, DigitalX appointed several key personnel, including Antanas Guoga (Tony G) as a strategic advisor. Guoga’s expertise in blockchain and digital assets has been instrumental in guiding the company’s Solana investment and staking strategy. Additionally, the board welcomed non-executive director Davide Bosio, whose extensive financial services experience is expected to bolster governance and growth initiatives.

DigitalX also advanced its involvement in regulatory innovation by being shortlisted to submit a detailed proposal for the Reserve Bank of Australia and Digital Finance Cooperative Research Centre’s Project Acacia, which explores the development of an AUD stablecoin.

Mt Gox Settlement and Financial Position

In a notable legal development, DigitalX settled a Federal Court dispute related to the Mt Gox bankruptcy, securing an expected receipt of approximately 42 Bitcoin, 52 Bitcoin Cash, and 18 million Japanese Yen during 2025. This settlement adds a valuable asset component to DigitalX’s balance sheet.

As of 31 December 2024, DigitalX reported total cash, listed digital assets, and unlisted investments valued at AUD 66.4 million. The company’s cash position stood at AUD 12.38 million, with net operating cash outflows reduced compared to the previous quarter, reflecting ongoing cost management efforts.

Outlook

DigitalX’s strategic investments, strong fund performance, and key appointments position it well to capitalize on the evolving digital asset market. The company’s focus on staking and yield generation, combined with regulatory engagement and product innovation, signals a commitment to sustainable growth and shareholder value creation.