DigitalX (ASX:DCC) share price soars 18% following Bitcoin update

The DigitalX (ASX:DCC) share price is soaring 18% following a Bitcoin update and report on the company’s digital assets funds management.

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asx share price reacting to bitcoin represented by hand placing bitcoin in gold piggy bank

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DigitalX Ltd (ASX: DCC) shares are soaring today following the release of an update on the company’s digital asset funds management business alongside developments in the Bitcoin (CRYPTO: BTC) and digital asset market.

At the time of writing, the DigitalX share price is trading 17.57% higher at 8.7 cents. Let’s take a closer look.

What did DigitalX report?

The DigitalX share price is on a tear today after the company reported that it is continuing to increase its exposure to Bitcoin, the world’s largest cryptocurrency. The company is also expanding its exposure to the wider digital asset market via increasing funds under management and corporate treasury.

DigitalX reported record monthly inflows in February, which it attributes to the activation of new funds management marketing strategies in January. The company is exploring the potential to evolve its Bitcoin Fund structure for greater accessibility and liquidity for both current and future investors.

DigitalX also revealed its direct Bitcoin and digital asset exposure is up 70% since 31 December.

The company forecast that 30% of the world’s population could own Bitcoin by 2024 if the historical rate of Bitcoin adoption continues apace. It also pointed to Tesla Inc (NASDAQ: TSLA)’s decision to invest US$1.5 billion (AU$1.9 billion) into Bitcoin, and its willingness to accept Bitcoin as payment, as more evidence confidence in digital assets is growing.

DigitalX itself is no newcomer to Bitcoin. The company has held Bitcoin as part of its long-term corporate treasury position since 2017.

Australian institutions have been slower to adopt cryptocurrencies such as Bitcoin than their United States counterparts.

Homing in on the Aussie market, Leigh Travers, executive director of DigitalX, said:

As more Australian investors become aware of this market opportunity, I am confident we will see a seismic shift in the investor interest in Australia. A multi-hundred billion dollar pool of capital is safeguarded in the Australian SMSF sector, and DigitalX is well placed to offer the secure and trusted provider for Bitcoin and digital asset investment.

DigitalX share price snapshot

With today’s intraday gains, the DigitalX share price is up 190% over the past 12 months.

For comparison, the All Ordinaries Index (ASX: XAO) is down 1% over that same time. Based on the current share price, DigitalX has a market capitalisation of around $46 million.

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Bernd Struben has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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