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DIGITALX LIMITED — Capital/Financing Update 2024
Nov 14, 2024
64762_rns_2024-11-14_65750f3f-b600-4baf-8353-0c1993fa89a7.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT 15 NOVEMBER 2024
UPDATE ON DIGITALX ACTIVITIES: COSTS REDUCED AND BALANCE SHEET STRENGTHENING
DigitalX Limited ( ASX:DCC, OTCQB: DGGXF ) (“ DigitalX ”, “ the Company” ) is pleased to provide this update to shareholders on its activities.
At a time when Bitcoin has risen in price from approximately AUD$95,000 in early July 2024 to a current price above AUD$130,000 as at the date of this announcement, DigitalX has been undertaking internal changes to ensure that it is well placed to maximise its revenues from this unprecedented surge in price, whilst heavily reducing its costs from its Financial Year 2024 levels to ensure the sustainability of its operations.
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As part of these reductions, significant changes have been made within the Company’s funds management team to reduce overall costs whilst ensuring the maintenance of the quality of its investment team and its ‘safe pair of hands’ approach to clients’ investments in its digital asset funds products. These changes, together with the overall Fund performance outcomes over the last 6 month, 12 month and multi-year periods, are intended to ensure that DigitalX retains its position as a leading digital asset fund manager in Australia.
| Performance | Performance | |||||
|---|---|---|---|---|---|---|
| 3-month | 6-month | 1 year | 3 year | 5 year | Since inception |
|
| Bitcoin Fund | 8.3% | 12.1% | 99.8% | 30% | N/A | 735.3% |
| Digital Asset Fund |
(2.1%) | 1.5% | 74.6% | 109.2% | 526.9% | 210.6% |
In addition to these products, the price of ETF units in DigitalX’s spot price Bitcoin ETF (ASX:BTXX) have increased from $20 per unit at launch to $31.09 as at the date of this announcement.
DigitalX Limited | ASX:DCC | 59 009 575 035 | Suite 2, Level 4, 66 Kings Park Road West Perth WA 6005 | digitalx.com
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Despite digital asset prices increasing significantly over the past 12 months, raising funds under management has been a difficult task for all digital asset funds, as the addressable investor market remains relatively small in comparison to other traditional investment products. However, the quality of the DigitalX team, together with its track record of performance, make it well placed to retain its market-leading position in this space.
In addition to these changes, the Board continues to investigate ways to leverage the increasing strength of our balance sheet to create further revenue generating opportunities for shareholders, be it through growth in the existing business or new acquisitions. DigitalX has already shown an ability to make strategic acquisitions to grow revenues, with the Company’s SellMyShares business continuing to show steady growth in revenues and profitability since its acquisition in September 2021.
DigitalX Chair, Toby Hicks noted: “ Following the end of Financial Year 2024, the Board knew that it had to make changes to the Company’s costs to ensure that we remained sustainable and capable of executing our business plan. To date, we have managed to reduce our costs by an approximate annualised figure of AUD$950,000 without impacting on the ability of the Company to execute our business plan.
For a long time, DigitalX has been a safe proxy investment for those who wanted to gain access to Bitcoin. However, here in 2024, there are now multiple ways in which the average investor can gain access to Bitcoin without holding Bitcoin in their own wallet, including by investing in DigitalX’s own Bitcoin ETF. Therefore, we recognise that it is important that we continue to develop the narrative around why investing in DigitalX shares remains the right strategic opportunity for investors.
With the prospect for greater regulatory clarity within and from the US, the opportunities that may present within the Company’s ecosystem are rapidly changing. With a 10-year track record of regulatory compliance and being a leader within the digital asset space in Australia, the Board’s aim is to position DigitalX as a flag bearer for digital assets as the “mainstream moment” arrives.
To this end, the Board continues to assess new opportunities to grow our revenues and head toward profitability by leveraging the strength of our balance sheet, our existing products and knowledge in both digital assets and traditional financial markets to grow shareholder value.
I would like to thank Greg Dooley, acting CEO, for stepping up into a leadership position during this period. He, together with our expanded leadership team have ensured that positive changes could be made to drive the Company forward. As we see an unprecedented surge in the price of the major digital asset, Bitcoin, we remain well positioned to take advantage of our 10-year track record and agile team to create and react to new opportunities as they arise.”
The DigitalX 2024 AGM will be held in Sydney on 28 November 2024 at 2.00pm at Level 2, 50 Bridge Street. All shareholders are welcome to attend.
For further information, please contact:
Investor Enquiries Media Enquiries DigitalX Limited Third Hemisphere Greg Dooley Jeremy Liddle Interim Chief Executive Officer Managing Director E: [email protected] T: +61 480 097 479 E: [email protected]
DigitalX Limited | ASX:DCC | 59 009 575 035 | Suite 2, Level 4, 66 Kings Park Road West Perth WA 6005 | digitalx.com
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About DigitalX
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DigitalX Limited (ASX: DCC) is a technology and investment company focused on growing the blockchain economy through its digital asset funds management business, digital fintech and regtech products, and one-off share sale business, SellMyShares.
Through its asset management division, DigitalX 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.
SellMyShares enables holders of ASX-listed shares to undertake one-off share sales without the need to open a broking account.
DigitalX is also currently commercialising Drawbridge, the Company’s first regtech solution which is supporting listed companies to better manage their compliance and corporate governance policies. With Drawbridge, companies can manage employee and director share trading approvals in order to safeguard their reputations.
www.digitalx.com | www.opendrawbridge.io | www.sellmyshares.com.au
DigitalX Limited | ASX:DCC | 59 009 575 035 | Suite 2, Level 4, 66 Kings Park Road West Perth WA 6005 | digitalx.com