DigitalX reported a $10.4m profit – including gains from cryptocurrencies
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DigitalX reported a $US8 million ($10.4 million) half-year profit today — including gains from the value of its cryptocurrency holdings.
Revenue from its core business of managing Initial Coin Offerings on behalf of other companies was $US3.5 million.
DigitalX also told investors it “recorded an increase in the value of its digital assets after the price of cryptocurrencies such as Bitcoin rose to record levels in December”.
Digital X listed $US11 million of those “digital assets” among its current assets:
It also has $US4 million in good old-fashioned fiat cash.
DigitalX’s Initial Coin Offering (ICO) and blockchain advisory business is travelling well.
(An Initial Coin Offering or ICO 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.)
Excluding the increase in the value of its cryptocurrency assets, the newly released accounts show the core ICO business is standing on its own two feet.
Peak cryptocurrency value
The December half was a good time to be in cryptocurrency. The value of digital tokens such as bitcoin soared in the period.
Bitcoin came close to $US20,000 on December 16. It finished the year at $US13,860 and is now trading around $US10,000.
Digital X has since added tokens from INS Ecosystem, Coinpoker, and SingularityNet.
It said that as of February 28, these were valued at $16 million.
DigitalX shares bounced 9 per cent to 24.5c by 3.30pm AEDT Wednesday.