DigitalX’s crypto portfolio has been on a rollercoaster but its bank balance is healthier
DigitalX’s crypto trading added $1.2 million to its bank balance last quarter but the value of its digital coin portfolio has been on a rollercoaster this year.
Digital X held seven different types of cryptocurrency worth about $5 million at the end of March including the two best-known digital currencies bitcoin and Ethereum.
DigitalX (ASX:DCC) sold 100 million tokens of one currency — Bankera — in December and added 7.1 million Coin Poker tokens, 1.6 million in SingularityNet and 135,000 in INS Ecosystem.
The total value of its crypto holdings was down from $US12 million at the height of the bitcoin hype in December to $US4.9 million ($6.5 million) at the end of March.
DCC’s quarterly reports show its bitcoin holdings zoomed from $US2.08 million in September up to $US6.9 million in December and back down to $US3.3 million last quarter.
The price of Bitcoin is now back to around where it was at the beginning of the sudden ramp up late last year.
Partly thanks to its crypto trading, DigitalX has managed to raise its cash balance by 29 per cent to $5.3 million. Though the company — which is advising on Initial Coin Offerings (ICOs) for a range of clients — only lifted customer receipts by $300,000 compared to the previous quarter (and didn’t raise capital).
An Initial Coin Offering is a form of crowdfunding. It is like an initial public offering — but instead of offering shares in a company, an issuer offers digital tokens that can be traded on cryptocurrency platforms or for digital services.
In addition to the Bankera tokens, the company sold off 10 Bitcoin, more than doubled its holdings of Ethereum, more than a third of its PowerLedger tokens, and traded away more than 2 million of its EtherParty tokens.
DigitalX shares were up 5 per cent on the news to 21.5c.