DigitalX Raises A$20.7 Million to Expand Bitcoin Treasury
Australian cryptocurrency fund manager DigitalX has secured a strategic funding round of A$20.7 million (US$13.5 million) to significantly increase its Bitcoin holdings and bolster its advisory board.
Key Highlights:
- Funding secured via a placement at A$0.074 per share.
- Investors include Animoca Brands, UTXO Management, and ParaFi Capital.
- Yat Siu (Exec Chairman, Animoca) and Hervé Larren join the advisory board.
- The primary goal is to purchase additional Bitcoin and support operational growth.
DigitalX, the only ASX-listed crypto fund manager (DCC), leveraged this capital raise to pursue its Bitcoin expansion strategy. Proceeds are allocated to Bitcoin purchases, covering approximately US$12.8 million of the total raised, with the remainder supporting operational costs.
The placement attracted warrants, granting investors potential future opportunities at an exercise price of A$0.15 (US$0.10).
Strategic Advisory Board Appointment
In conjunction with the funding, DigitalX appointed two prominent Web3 figures: Animoca Brands’ Executive Chairman Yat Siu and Web3 advisor Hervé Larren to its newly established advisory board.
Yat Siu on Bitcoin’s Role in Web3
Speaking to Decrypt, DigitalX advisor Yat Siu underscored Bitcoin’s foundational role:
“DigitalX’s strategy makes perfect sense, especially in Australia where investors can utilize superannuation funds for ASX investments. Having a vehicle that’s specifically accumulating Bitcoin is unique.
“We firmly believe Bitcoin serves as the ‘original on-ramp’ to the broader digital asset ecosystem.”
“Bitcoin is both a hedge and a store of value. Holding it provides a crucial entry point for deeper engagement within the Web3 space.”
“It’s the most secure gateway available for participating in the future digital economy.”
In essence, Siu views significant Bitcoin treasury expansion as a fundamental step for platforms aiming to anchor broader Web3 strategies.
Beyond the Balance Sheet: Caution in Context
When asked about corporate Bitcoin accumulation strategies, Siu offered a measured perspective, distinguishing temporary motivations from long-term positioning:
“The trend of putting Bitcoin on the balance sheet is good ‘marketing’, not dissimilar from other market trends.
“We need to look beyond the balance sheet and examine the company’s core crypto expertise, ability to manage digital assets effectively, and the long-term strategic consistency of its approach.”
“Attention gained through Bitcoin isn’t sustainable once adoption is widespread. Companies must demonstrate genuine, deep-level digital capability.”
Siu clarified that this funding round signals continued growth for DigitalX.
“This is clearly “the beginning, not the end” of DigitalX’s expanding involvement in the Bitcoin market, following its established trajectory within this space,” he noted.
The Trustonomics Bottom Line
DigitalX’s strategic funding underscores increasing corporate interest in on-ramping exposure via Bitcoin, aligning with narratives led by firms like MicroStrategy. Web3 leaders like Yat Siu see Bitcoin not just as a portfolio asset, but fundamentally as a secure gateway for deeper Web3 engagement.
While the current funding validates Bitcoin accumulation as a legitimate corporate strategy, the long-term success of any platform rests on its core capabilities and commitment beyond attracting market attention through its treasury balance.
