DIGITALX LIMITED — Investor Presentation 2019

Nov 20, 2019

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COMPANY OVERVIEW Technical and investment services for the Blockchain marketplace

Disclaimer

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These presentation materials and the accompanying verbal presentation (together, the Presentation Materials ) are confidential and have been prepared by DigitalX Limited ( Company ). By receiving the Presentation Materials, you acknowledge and represent to the Company that you have read, understood and accepted the terms of this disclaimer.

It is the responsibility of all recipients of these Presentation Materials to obtain all necessary approvals to receive these Presentation Materials and receipt of the Presentation Materials will be taken by the Company to constitute a representation and warranty that all relevant approvals have been obtained.

These Presentation Materials are for information purposes only. The Presentation Materials do not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission) or any other law.

The Presentation Materials also do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection therewith or act as any inducement to enter into any contract or commitment with respect to securities. In particular, these Presentation Materials do not constitute an offer to sell or a solicitation to buy, securities in the United States of America.

The Presentation Materials are not investment or financial product advice (nor tax, accounting or legal advice) and are not intended to be used for the basis of making an investment decision. Recipients should obtain their own advice before making any investment decision.

The Presentation Materials do not purport to be all inclusive or to contain all information about the Company or any of the assets, current or future, of the Company.

The Presentation Materials contain summary information about the Company and its activities which is current as at the date of the Presentation Materials. The information in the Presentation Materials is of a general nature and does not purport to contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a prospectus or product disclosure statement or other offering document prepared in accordance with the requirements of Australian law or the laws of any other jurisdiction, including the United States of America.

The Company does not undertake to provide any additional or updated information whether as a result of new information, future events or results or otherwise. All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

Forward Looking Statements

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Certain statements contained in the Presentation Materials, including information as to the future financial or operating performance of the Company and its projects, are forward looking statements. Such forward looking statements:

are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and

may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

The Company disclaims any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise.

The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements.

All forward looking statements contained in the Presentation Materials are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the Presentation Materials. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Commonwealth of Australia)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it.

Capital Structure and Performance

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DigitalX share price vs the bitcoin price since Q3 2017
SHARE PRICE SHARES ON ISSUE CASH, LISTED DIGITAL ASSETS AND FUND UNITS (30/09/2019) MARKET CAP BITCOINS
$0.03 ~ 600,000,000 ~AUD$12,000,000 ~$18,000,000 431
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Board of Directors and Advisors

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LEIGH TRAVERS Executive Director

Mr. Travers has served on the board of Australia's Blockchain industry body since 2015. Leigh has co-founded a Blockchain media and education company and the Perth Blockchain Centre, a coworking space that serves as a home for Perth tech and investment professionals. Leigh previously worked for seven years at an ASX-Listed wealth management firm. Leigh holds a Bachelor of Commerce and Communications from UWA, a Fintech Certification from MIT while living in Boston during 2016 and a Blockchain Strategy Certificate from RMIT in 2019.

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TOBY HICKS Non-executive Chairman

Mr Hicks has been a corporate lawyer advising public companies for over 15 years and is presently a Partner of Steinepreis Paganin. He is a former Governor of the University of Notre Dame Australia, a position he held for 16 years. He was a member of the University’s Audit and Finance Committee for 14 years and was a member of the Law School Advisory Board. In 2018, the University named the Toby Hicks Service to Student Community Award in honour of his contribution to the University over 23 years.

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PETER RUBINSTEIN Non-executive Director

Mr Rubinstein has over 20 years’ experience in early stage technology commercialisation through to public listings on the ASX. He is a lawyer by training, having worked at one of the large national firms prior to moving in house at Montech, the commercial arm of Monash University.

MARK PUZEY Strategic Consultant

Mr Puzey joined DigitalX as a strategic consultant driving innovation and strong corporate governance to the organisation as well as an established corporate network. Mark served as a consultant for 30 years at KPMG in the IT and energy sector before moving into advisory and NonExecutive Director roles.

Mark is a director of the Perth Mint and served on the Board of Patersons Securities Limited. Mark has recently finalised board positions at two independent businesses in the IT and energy sectors which both sold for $1.6b.

Highly Experienced Team

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DAVID BEROS Head of Product

David is a leader in technology innovation and leverages his experience to discover technology solutions for business problems. David most recently worked and consulted in corporate innovation roles for companies in the energy and insurance sectors. Prior to this, he worked in wealth management with a focus on wholesale and retail capital raisings. He went on to start two digital financial services businesses and is co-founder of Fintech Perth – a community of finance industry startups in WA.

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PHIL GEORGE Technology

Phil is a specialist in technology commercialisation and strategy. With expertise in telephony, cybersecurity & financial technology & blockchain, Phil is a Director and Founder of Bamboo. Phil currently sits on the board of WhiteHawk (ASX:WHK), which specialises in cyber-security solutions via a machine learning online cyber-security marketplace. Phil was Operations & Logistics Manager for Uber Australia during its formative period. Phil founded NURV in 2008, which delivers modern telephony solutions. He was also a mentor for the Plus 8 Early Stage Technology Accelerator. Phil holds a Bachelor of Computer Science from Murdoch University in Internetworking and Security.

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MIKE SEGAL Chief Technology Officer

Mike is an expert in cryptography and machine learning and has worked at several Boston and San Francisco-based companies. Mike was a member of the first weekly Bitcoin Meetup group in the world, and conducts smart contract code auditing and reviews for DigitalX clients. Mike advises on security architecture for all DigitalX projects.

NEEL KRISHNAN Analyst

Neel has held senior positions at a number of US based hedge funds, and as a financial analyst at the Federal Reserve Bank of New York, where he published a number of academic papers. Neel leads DigitalX’s US team and asset management division, and is a specialist in market microstructure and crypto-economic models.

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BLOCKCHAIN CONSULTING AND DEVELOPMENT

Market Opportunity

According the Deloitte’s 2019 Global Blockchain Survey, blockchain technology is now a top-five strategic priority among senior executives.

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8

Engagement Opportunity

39% of respondent said they plan to invest $5M or more in blockchain technology in the coming year.

DigitalX consulting opportunity is moving beyond digital asset businesses and into large traditional corporations.

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Solution Capabilities

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Significant barriers still remain to greater investment in blockchain technology. Organisations lack in-house capabilities, and are looking for guidance on issues such as legacy system integrations and regulatory issues. A significant opportunity exists for DigitalX to provide these capabilities.

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Solution Delivery

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DIGITALX FUNDS MANAGEMENT

Factors Driving Bitcoin Demand over next 3-5 years

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01 Millennials: measures of government distrust among millennials and Generation Z are high. Most Millennials and all of Gen Z are also digital natives who are comfortable with holding value digitally.

02 Institutions, ETF’s and traders:

We identify three main

drivers of

Bitcoin

demand going forward

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all major banks and many corporates have experimented with digital assets. Institutions such as CME group have grown large futures markets in Bitcoin. Asset acts as ‘Digital Gold.’ More than 30 ETF’s are being proposed for launch.

03 QE and financial instability:

• Over the past 5 years, Bitcoin prices have responded positively to financial uncertainty events such as Brexit, while the growth of the asset itself happened in the wake of the GFC.

• Bitcoin has been heavily used as an hedging asset in China and other nations experiencing financial instability and inflationary pressures.

• Return of QE policies and weakening growth is expected to spur further demand amongst those seeking a hedge against value erosion or financial instability, especially amongst younger savers.

Factors Driving Bitcoin Demand over next 3-5 years: QE, Return of Financial Instability

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While the investment narrative around bitcoin as a “safe haven” asset has yielded limited support in major investment markets, in volatile markets, currency devaluation is significant and the appeal of Bitcoin is growing strongly.

Source: https://coinsharesgroup.com/research/2019-crypto-trends-report

The Challenges with Self-custody

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Regulatory understanding Investment Mandate satisfaction

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Exchange and counterparty licensing and due diligence Exchange liquidity and fee review Order funding and transfer limit review Self custody technical understanding and implementation and risk of loss Audit procedure Taxation reporting

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Professional service access – de-banking risk and insurance access Estate planning and succession Dealing with forks and airdrops

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The Solution: DigitalX Bitcoin Fund

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• The DigitalX Bitcoin Fund provides qualified investors with direct exposure to Bitcoin and is designed to track the Bitcoin price.

• The Bitcoin Fund offers industry leading infrastructure and insurance under a familiar investment structure of an unlisted unit trust.

• Fees are kept as low as possible, with 0% performance fee and only 1.65% management fee.

DigitalX Asset Management

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DigitalX launched our first digital asset investment product in May 2018

• Australian based, proprietary index fund that invests in the Top 10 digital assets by market capitalization, goal is to outperform market cap weighted index over 5 year time horizon

• Diversified digital asset exposure for Australian wholesale and institutional investors

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ACCELERATION AND INCUBATION OF BLOCKCHAIN TECHNOLOGIES

First Accelerator Asset, xbullion

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DigitalX has acquired a 17.49% stake in the management company of xbullion, a blockchain backed, vaulted, audited and insured gold stablecoin.

Gold bullion typically forms part of any diversified investment portfolio and is generally purchased through either exposure to ETFs or physically held bullion. When bullion is physically held you bear the responsibility of transport, vaulting and insurance while dealing with associated fees. Investment in ETFs or gold funds do not typically provide allocated gold bullion for redemption.

xbullion is an easy solution for private wealth referrals and direct HNW investment as it is allocated, audited and insured, fully redeemable, liquid, transferable, and can be purchased at extremely competitive prices in comparison to retail and ETF/Fund pricing

xbullion

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“A stablecoin is the true essence of what an optimal cryptocurrency should really be; Stable, Scalable, Private, and Decentralised.”

– Forbes

Stablecoin marketplace

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Source: CoinShares-2019-Crypto-Trends-Report

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DigitalX Ltd Financial, technical and investment services for the blockchain marketplace Perth | New York | Sydney

For more information, please contact clients@digitalx.com