DigitalX seeks $15.4m in share issuance

DigitalX, an ASX-listed wholesale fund manager and blockchain advocate, has confirmed a private placement to raise $10.3 million from new shareholders, with an additional rights issue to existing shareholders set to raise a further $5.09 million.

The publicly listed fund manager confirmed it has secured subscriptions for the issuance of more than 219 million shares – with a value of $0.047 per share – through private placement.

The placement, which will provide additional liquidity and a capital boost for the firm, DigitalX said has been “strongly supported by a number of existing and new sophisticated investors”.

DigitalX notes that its directors have committed $611,000 under the placement (totalling 13 million shares), subject to shareholder approval in early 2025.

The capital raise will be enhanced with around 41 Bitcoin being received from Mt Gox administrators throughout calendar year 2025, valued at approximately $7 million, Digital X added.

The placement and rights issue will net approximately $15.4 million for the fund manager, with the substantial capital injection to give the firm more than $18 million in cash at bank.

Additionally, the firm holds around $58 million in digital assets, and notes increasing demand for its Bitcoin ETF, which since inception in July 2024 has grown to more than $54 million in value.

In addition to the placement announcement, DigitalX has confirmed the appointment of Antanas Guoga in an advisory role to assist the company in expanding and growing its existing digital asset staking and validation services to grow revenues and asset values.

Guoga, touted as an experienced digital asset and blockchain enabler, has invested $4.7 million under the placement, which is subject to a 12-month voluntary escrow period.

He currently serves as chair of Canadian listed firm Solana Strategies Inc., a cryptocurrency and blockchain technologies investor.

Guoga will receive 25 million options in the Company, exercisable at $0.10 on or before the date that is two years from issue, subject to receipt of the approval of the Company’s shareholders at a general meeting to be convened for late January 2025.

DigitalX, which touts itself as the “world’s first publicly listed blockchain technology company”, is a multifaceted technology and investment company focused on growing the blockchain economy. Its business covers digital asset funds management, digital fintech and regtech product development, and blockchain ventures.

Founded in 2018, DigitalX’s asset management division provides low-cost traditional asset management products for qualified investors looking to gain exposure to the growing alternative asset class of digital assets, including Bitcoin.

In July 2024, DigitalX was among the first to launch a spot Bitcoin ETF on the ASX – listed as BTXX. As well, the firm boasts a passive Bitcoin Fund, an actively managed Digital Asset Fund, and Real World Asset Tokenisation Fund.