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DIGITALX LIMITED Investor Presentation 2023

Aug 7, 2023

64762_rns_2023-08-07_10459a38-b8f3-4128-b17b-7b6d73da7284.pdf

Investor Presentation

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June 2023 Quarterly Investor Webinar

8 August 2023

ASX:DCC, OTCQB:DGGXF | digitalx.com

Disclaimer

The material in this presentation has been prepared by DigitalX Limited (ACN 009 575 035) (“Company”).

This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval of the Company. The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Any offering of any of the Company's securities to Australian persons will be subject to Australian securities laws. The distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, all such restrictions.

This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice as appropriate and consult a financial adviser if necessary.

This presentation may contain forward-looking statements that are subject to risk factors associated with a technology business. Forward looking statements include those containing such words as "anticipate", "estimates", "forecasts", "should", "could", "may", "intends", "will", "expects", "plans" or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions.

This presentation has been prepared by the Company based on information currently available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party.

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

002

DigitalX

Strategy

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OUR STRATEGIC OBJECTIVES

Impact - To be a leader in culture, environment, and a stand for positive social impact while generating sustainable financial returns to build value for shareholders.

Grow - To grow customer focused businesses that underpin the ongoing profitability and future sustainability of DigitalX.

Build - To build customer and colleague focused businesses that underpin the ongoing profitability and success of DigitalX.

Transact - To become Australia’s largest provider of digital finance products by enabling customers to effortlessly transact.

Invest - To be the most trusted and respected provider of digital asset investments for corporate Australia.

KEY RESULT

ESG measures, ENPS

Cashflow revenues, Pathway to Profitability

NPS %, customer and subscriber #’s (eyeballs)

Transaction volumes (clips) / velocity

TVL, Ventures

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

003

DigitalX

Our Company

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DIGITALX
Digital Investment Management
What we do
Investment
Risk
Research & Custody Trading Compliance
Management
Selection
Crypto Assets Shares
Our
Products &
Services
Digital Asset
DxART Fund Bitcoin Fund Sell My Shares Drawbridge
Fund
Advanced DigitalX Asset Reference Due diligence Automic Group Deceased estates
Token fund
this Qtr launched with HxART pool automation share sales campaigns
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June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

004

DigitalX

Highlights - Building scalable, sustainable revenue

Launched the DigitalX Asset Reference Token (DxART) Fund, with our first investment pool consisting of Housing Asset Reference Tokens (HxARTs), marketed via our 1,000 Faces campaign

Record revenue for Sell My Shares up 22% from previous two quarters

Strong fund performance Bitcoin Fund +9.1% DigitalX Fund +3.2%

Continued business transformation with Automic Group coming onboard as finance partner

Strategic initiatives for Sell My Shares have contributed $232k, 35% of total revenue for the quarter

Co-created build of tokenisation capability in partnership with Blockfold and Fireblocks

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

005

DigitalX

Quarterly Business Activity

Sell My Shares

Record brokerage revenue of $654k over the quarter.

  • Automic Group revenue contributed $21k (3% of revenue)

  • Deceased Estates increased to $135k (21% of revenue)

  • International sales contributed $35k (5.5% of total revenue)

  • T-Zero settlements sales volume increased by 50%

These four strategic initiatives executed by current management have contributed 35% to the Sell My Shares revenue for the quarter.

Digital Asset Management

The DigitalX Asset Reference Token fund launched.

The DigitalX Bitcoin Fund (“DXBF”) rose 9.1% and Digital Asset Fund (“DXF”) gained 3.2%, outperforming Top 10 Equal Weighted Crypto Index (“Index”) -10.2%.

Calendar YTD returns are +84.4% for DXBF and +51.7% for the DXF outperforming the Index +34.6%.

Positive market outlook following BlackRock’s ETF application, Ripple court win, BTC halving.

Product Development

Drawbridge

Unsuccessful for ASIC funding, so re-defining product roadmap aligned with strategy and strategic partners.

ETH Validator Nodes & Staking

Took advantage of the Ethereum Shanghai-Capella network upgrade.

Tokenised Investment Pool - T0k PoC

Learnings harvested to accelerate the development of the DxART Fund.

DxART Fund Infrastructure

Tokenised the fund, including workflow innovation co-created around the ERC4626 yield-bearing token standard, giving ability to tokenise real-world assets and create

investment pools. Design work commenced for “ Smartlist ” automation component of due diligence and investment process.

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

006

DigitalX

Corporate Activities

Operations

Continued improvement in operational efficiency through:

  1. Onboarding Automic for back-office efficiency

  2. Cost reduction initiatives, reducing cash outflows by $170k

  3. Strategic planning for FY24, with a marketing and distribution focus for Funds

  4. Further developing SMS revenue initiatives and margin improvement

Treasury

Leveraged the 12-month high price trading for Bitcoin to sell down a portion of DigitalX’s Bitcoin holdings held in Treasury (~17%) into cash.

The conversion aligns with the Company’s broader strategic initiative to actively manage treasury assets, increase working capital and optimise investment opportunities.

ESG Baseline Report

Continued work with Social Suite to improve ongoing initiatives and reporting enhancements within the company.

Baseline report reviewed to identify gaps.

Recommendations received to determine areas of improvement in DigitalX’s ESG profile.

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

007

DigitalX

Outlook

  • → Improve recurring revenue generation and operational excellence, and continuing to map a pathway to profitability.

  • → Focus on raising funds into our DigitalX Asset Reference Token Fund.

  • → Seek favoured nation seed investors for DxART fund.

  • → Amplification of our Digital Assets education platform via our new website, which is due to be launched in November 2023.

  • → Sales channel development for the Bitcoin Fund, the Digital Assets Fund and the DxART Fund.

  • → Strategic partnerships to bring scale and global reach.

  • → Margin improvement for the Sell My Shares business and development of partnerships to boost revenue.

  • → Fostering the broader adoption of Web3.0 through work with the Digital Finance Cooperative Research Centre and the University of NSW Research Lab UNOVA.

  • → Corporate transformation continuing our path toward operational excellence and profitability.

  • → Continued focus on long-term strategic execution and building a solid, sustainable revenue base with a continued ESG and cost conscious approach - to maximise shareholder returns

June 2023 Quarterly Investor Webinar

ASX:DCC, OTCQB:DGGXF | digitalx.com

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DigitalX

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[email protected] | www.digitalx.com