DigitalX secures $15m plus support of Sol Strategies’ Tony G

Australian fintech DigitalX has secured subscriptions for a private placement to raise $10.3 million
This will be complemented by $5 million from existing shareholders and 41 Bitcoin to be received from the Mt Gox settlement
Chairman and major shareholder of Sol Strategies Antanas Guoga, also known as Tony G, has been appointed as a strategic advisor

Special report: Australian fintech DigitalX has just secured major backing for its next phase of growth via a funding boost of approximately $15 million, 40 Bitcoin and the services of Sol Strategies’ Antanas Guoga, widely known as Tony G.

The funds include subscriptions for a private placement to raise $10.3 million (before costs).

DigitalX (ASX:DCC) will also undertake a rights issue to all existing shareholders to raise up to a further $5 million on the same terms as the placement, those being the issue of 219,148,936 shares at $4.7c per share. DigitalX directors have put $611,000 worth of skin into the game under the placement.

In addition, the DCC board has engaged Guoga in an advisory role to help expand and grow DigitalX’s existing digital asset staking and validation services.

Chair of Canadian-listed Sol Strategies, Antanas is an experienced digital asset and blockchain developer.

Sol Strategies recently reached a market cap of more than $300 million and DigitalX is confident Guoga can also push revenue and asset value growth at the Australian company. Guoga has endorsed the company’s vision by investing $5 million under the placement.

For his role as a strategic advisor, Guoga has agreed to receive 25 million options in DigitalX. These will be exercisable at 10c on or before the date that is two years from issue, subject to shareholder approval at a general meeting to be held in early February 2025.

Platform for growth

DigitalX CEO Greg Dooley said: “Securing support from innovators like Tony G is a pivotal milestone for our company.

“Guoga’s experience and confidence in our vision will enable us to continue to lead the market in the digital assets sector.

“Our funds give investors exposure to digital assets via the security of a simple, regulated structure, without needing to hold a digital wallet.”

Following completion of the placement and the rights issue, DigitalX will be well set up for growth with more than $18 million in cash in the bank.

On top of that it will have digital assets on its balance sheet of $58m plus the 40 Bitcoin from the administrators of the Mt Gox Exchange. These are currently valued at approximately $6.36 million and are expected to be returned to DigitalX over the course of CY25.

DigitalX is also receiving record monthly revenues from its Sell My Shares business.

The company’s substantial strategic funding and appointment of Guoga comes at a time of increasing interest in crypto and DigitalX’s spot Bitcoin ETF.

Making crypto great

In the run-up to the new year Bitcoin has jumped to record highs, breaching the US$100,000 barrier this month.

The most recent spike has been driven by rhetoric from Trump that’s been backed up by key hires who are set to turbocharge crypto’s acceptance.

With other key figures in the administration broadly positive about crypto and blockchain, there have been reports that the US Treasury is planning to invest US$76 billion in Bitcoin over five years as a long-term hedge against inflation and economic instability.

Crypto without the hassle

Whenever crypto prices spike, newbie investors want in on the action. But many are put off by the complex, time-intensive world of digital wallets, passwords and insurance against the risks of unauthorised access, transaction errors and more.

As Australia’s first publicly listed blockchain tech company DigitalX has runs on the board for providing easily accessible crypto opportunities since 2014.

Its funds have been among the best performing in the market across 2024. The DigitalX Fund DXF has had exceptional returns, up 31.9% for the month and 81.1% on a year to date basis.

And the DigitalX Bitcoin ETF (ASX:BTXX) is up 86.9% since its launch specifically for retail investors in July this year.

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.