tl;dr
DigitalX, Australia's only ASX-listed crypto fund manager, raised A$20.7 million from prominent digital asset investors to increase its Bitcoin holdings and form a new strategic advisory board. The placement offered shares at A$0.074 with warrants exercisable at A$0.15. Major investors included Anim...
DigitalX (DCC), Australia's only ASX-listed crypto fund manager, has successfully raised A$20.7 million (US$13.5 million) from a group of prominent digital asset investors. The funds will be primarily used to boost its Bitcoin holdings and to establish a new strategic advisory board. The placement was priced at A$0.074 (US$0.048) per share, with investors receiving one warrant for every two shares, exercisable at A$0.15 (US$0.10) within 18 months. Major participants included Animoca Brands, UTXO Management, and ParaFi Capital. Of the raised capital, A$12.8 million is earmarked for acquiring additional Bitcoin, while the remainder will support operational and working capital needs.
In conjunction with the capital raise, DigitalX appointed Animoca Brands' Executive Chairman, Yat Siu, along with Web3 advisor Hervé Larren, to its newly formed advisory board. Siu, a prior investor in DigitalX, highlighted the unique position of DigitalX and Animoca as former ASX-listed companies operating in a drastically different market environment. Siu emphasized that DigitalX represents one of the few accessible ways for Australian investors, particularly through superannuation funds, to gain exposure to Bitcoin—the most recognized digital asset class.
Siu also described Bitcoin as a gateway to the wider digital asset ecosystem, recommending that everyone hold some Bitcoin as a hedge and store of value. He suggested that owning Bitcoin, either directly or indirectly, opens pathways to other tokens and expands on-chain activity. Regarding the risks of companies adopting Bitcoin-heavy strategies, Siu explained that risk levels depend on the acquisition method, noting equity raises carry lower risk compared to debt, which varies with underlying security.
The trend of adding Bitcoin to corporate balance sheets gained momentum after firms like Strategy began significant Bitcoin acquisitions as early as August 2020, mainly through convertible debt offerings. Michael Saylor's firm has since emerged as the largest corporate Bitcoin holder, boasting over 597,000 BTC. Similarly, Japan’s Metaplanet is positioning itself as “Asia’s MicroStrategy” by acquiring Bitcoin through combined equity and planned debt raises.
Siu framed Bitcoin balance sheet buys as part of market marketing trends and urged investors to discern whether companies adopting these strategies are serious and long-term focused or simply seeking attention. He advised looking for firms with genuine expertise in digital assets as a prudent approach to accessing Bitcoin’s future potential.
When questioned if the recent capital raise signals the culmination of DigitalX’s Bitcoin strategy, Siu confidently stated, “Deeper. This is the beginning, not the end.” This signals DigitalX’s commitment to expanding its footprint in the evolving Bitcoin landscape.