Small-cap ASX tech stock DigitalX Ltd (ASX: DCC) is off to the races today.
Shares in the blockchain-focused technology and investment company closed yesterday at 5.4 cents. In morning trade on Wednesday, they just leapt to 7.8 cents, putting the DigitalX share price up 38.8%.
After some likely profit-taking, shares are currently changing hands for 6.8 cents apiece, up 25.9%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.3% at this same time.
Here's what's sending the ASX tech stock soaring today.
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ASX tech stock lifts off on capital raise
Investors are piling into the small-cap ASX tech stock after management announced that DigitalX had secured subscriptions for a private placement to raise $10.3 million.
The company will issue 219,148,936 shares at 4.7 cents per share, a significant discount to the current share price. Management said it would also undertake a rights issue to all existing shareholders to raise up to an additional $5.09 million on these same terms.
In total, DigitalX will raise around $15.4 million.
The company noted that the share placement received strong support from "a number of existing and new sophisticated investors".
DigitalX's directors were reported to have committed $611,000 under the placement, subject to shareholder approval.
And an expert advisor on board
The ASX tech stock also looks to be getting a boost after announcing it has engaged experienced digital asset and blockchain enabler Antanas Guoga, aka Tony G, in an advisory role. Guoga is the chair of Canadian-listed Solana Strategies Inc.
The board said that Guoga would help DigitalX "expand and grow its existing digital asset staking and validation services to grow revenues and asset values".
Guoga has invested $4.7 million under the placement, which is subject to a 12-month voluntary escrow period. His advisory agreement is expected to run for two years.
Subject to shareholder approval at the upcoming general meeting in January, Guoga will receive 25 million options in the ASX tech stock. The options will be exercisable at 10 cents each on or before the date that is two years from the date of issue.
Looking ahead
Once the placement is complete, DigitalX will have more than $18 million in cash in the bank and around $58 million in digital assets on its balance sheet.
Additionally, the company expects to see some 41 Bitcoin (CRYPTO: BTC) returned in 2025 from the administrators of the Mt Gox Exchange. At the recent Bitcoin price, those are valued at some $7 million.
Looking ahead, the ASX tech stock forecasts increasing demand for its spot Digitalx Bitcoin ETF (ASX: BTXX). It was launched in July and has grown to more than $54 million today.
