Crypto finance heavyweights back $20.7m raise for DigitalX

• DigitalX raises $20.7 million from global investors including Animoca Brands, UTXO Management and ParaFi Capital
• The ASX-listed digital asset manager will use the capital to expand Bitcoin holdings A new strategic advisory board to include Animoca’s Yat Siu and Web3 veteran Hervé Larren

Special Report: DigitalX has secured $20.7 million in strategic investment from a cohort of global digital asset leaders, marking a major step forward in its mission to deliver a Bitcoin-first investment strategy through a regulated, ASX-listed platform.

The raise attracted backing from major Web3 player Animoca Brands, Bitcoin-native UTXO Management, blockchain asset manager ParaFi Capital and other high-profile executives including Metaplanet president and CEO Simon Gerovich, who invested in a personal capacity.

Proceeds from the raise will be used to expand DigitalX’s (ASX:DCC) existing Bitcoin treasury position, which currently includes 65 BTC held directly and 881,000 units in its BTXX ETF (equivalent of 193 Bitcoin), currently valued at approximately $43.3 million. Following the raise, the company’s total assets are expected to exceed $95 million.

DigitalX’s Bitcoin-focused strategy reflects a broader global trend of listed companies adopting Bitcoin as a treasury asset. High-profile global peers include MicroStrategy, the world’s largest corporate BTC holder, TwentyOne, Tokyo-listed Metaplanet and France’s The Blockchain Group – all of which have successfully implemented Bitcoin treasury strategies and created positive shareholder value.

By leveraging its ASX-listed status and regulated framework, DigitalX aims to provide Australian and Global investors with a comparable exposure to its Bitcoin treasury operations.

“This strategic investment marks a significant milestone for DigitalX as we continue to focus on Bitcoin as the core of our treasury strategy,” said interim CEO Demetrios Christou.

“The backing of these globally recognised leaders in the Bitcoin space not only provides the capital to expand our Bitcoin holdings but also provides invaluable strategic expertise and access to their networks.”

DigitalX will also establish a new strategic advisory board, with proposed members including Yat Siu, co-founder and executive chairman of Animoca Brands, and Hervé Larren, CEO of US-based Web3 firm Airvey.io.

“I’m excited to announce that after engaging with major global crypto equity investors, as well as our current major shareholders, it’s clear there’s very strong demand for a singular and focused digital asset treasury strategy centered on Bitcoin and listed on the ASX,” said DigitalX non-executive chairman Leigh Travers.

“We have listened to this valuable feedback and are proud to welcome some of the largest and most well-regarded crypto investors in the space to our cap table.”

The placement was priced at $0.074 per share, a 1.5% discount to the 15 day VWAP, with approximately 279.7 million new shares issued. Attaching warrants are subject to shareholder approval. Animoca will receive a 3% advisory fee on funds raised, and UTXO Management will be entitled to nominate a non-executive director.

The announcement also comes amid rising institutional and sovereign interest in Bitcoin globally, with DigitalX positioning itself as a leading ASX-listed gateway to the asset.

“The partnerships with global heavyweights such as UTXO, ParaFi and others makes DigitalX the premier vehicle for Bitcoin access in Australia,” said Yat Siu, executive chairman of Animoca Brands.

“Bitcoin is the reserve asset of Web3 – digital gold.”

This article was developed in collaboration with DigitalX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.