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.

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.

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At the time of writing, DigitalX shares are fetching 11 cents, up 14.13%. It's worth noting its shares are now around 24% higher than this time last week.

What did DigitalX announce?

Investors are pushing up the DigitalX share price following the company's positive update.

According to Thursday's release, DigitalX has appointed highly experienced finance industry executive Lisa Wade as its new CEO.

This follows an extensive search process after the resignation of Leigh Travers in late July. His departure came into effect during September after giving a two months' notice period.

Incoming CEO Wade brings a wealth of knowledge to the role, having served for more than 30 years in the finance industry.

With a strong background in blockchain project development, Wade recently led the Project Atom Central Bank Digital Currency project (CBDC). This is a collaborative research project between the Reserve Bank of Australia, Commonwealth Bank of Australia (ASX: CBA) and Perpetual, and Project Carbon. The latter is a global strategic alliance tokenising voluntary carbon credits with Latu, CIBC, Natwest, and National Australia Bank Ltd (ASX: NAB).

Previously, Wade held various titles including director at Citigroup where she specialised in arbitrage and derivatives.

Most recently, however, Wade took on the position of head of digital innovation and sustainability at NAB.

She is also a non-executive director of Blockchain Australia, the peak blockchain industry body in Australia.

DigitalX stated that Wade is expected to fulfil the new CEO role as soon as her notice period is expired from her existing job. No exact date was given in the release.

DigitalX share price summary

So far this year, the DigitalX share price has gained around 13%.

Based on today's price, DigitalX commands a market capitalisation of about $77.96 million and has approximately 742.44 million shares outstanding.

The post The DigitalX (ASX:DCC) share price is soaring 14% today. Here's why appeared first on The Motley Fool Australia.

At the time of writing, the blockchain and asset management services provider's shares are fetching for 10.5 cents, up 19.32%.

What did DigitalX announce?

Investors are fighting to get a hold of DigitalX shares following the company's positive release.

In a statement to the ASX, DigitalX advised it has integrated the Drawbridge mobile application with Sell My Shares. This will enable employees and directors to quickly execute trades that have been approved under their company's share trading policy.

DigitalX noted that the feature marks an important milestone to commercialise Drawbridge and reap the rewards. The business application focuses on opening revenue streams through trading proceeds in addition to a software as a service model.

Furthermore, the company stated it has beefed up the Sell My Shares team with the appointment of Peter Hume. Taking on the role of product owner, Mr Hume will be tasked with executing product improvement and growth opportunities.

An experienced technologist, Mr Hume formerly held positions as chief technology officer (CTO) of stock market information platform, Market Index. He also co-founded and served as CTO of savings and digital asset investment app, Bamboo.

Pleasingly, it appears the Sell My Shares business is exceeding growth targets following DigitalX's acquisition on 30 September. As such, the first two months has experienced revenues of 35% greater than originally forecasted in the purchase agreement.

Quick take on DigitalX

Founded in 1998, DigitalX is an Australian technology and investment company focused on blockchain technology development and digital assets funds management.

DigitalX gives investors a way to gain digital asset exposures through a secure and accessible platform.

The company operates through three segments; blockchain consulting and development, asset management, and other. The latter relates to governance, finance, legal, risk management, company secretarial and management of the corporate entity.

DigitalX share price snapshot

Adding to today's gain, the DigitalX share price has surged by almost 30% over the past 12 months. However, when looking at year-to-date, its shares are trading around 12% higher.

Based on today's price, DigitalX commands a market capitalisation of about $77.96 million and has approximately 742.44 million shares outstanding.

The post DigitalX (ASX:DCC) share price leaps 19% on Sell My Shares update appeared first on The Motley Fool Australia.

At the time of writing, DigitalX shares are fetching for 12.5 cents, up 8.70%. It's worth noting that its shares are a whisker away from breaking its multi-year high of 15.8 cents reached in mid-November.

What did DigitalX announce?

Investors are fighting to get hold of DigitalX shares following the company's latest update.

In today's release, DigitalX advised that it has entered into a partner agreement with the Digital Finance Cooperative Research Centre (Digital Finance CRC).

Established in 2018, the Digital Finance CRC brings together companies to undertake research and commercial activities to exploit the digital finance revolution. The group consists of organisations in the finance industry, the Reserve Bank, as well as academics from numerous Australian universities.

Importantly, this allows DigitalX to collaborate with other leading companies around Australia focused on financial and blockchain technologies. This relates to innovations in digital finance, including asset tokenisation, central bank digital currency and regulatory technology.

On 30 June 2021, the Australian federal government provided $60 million to the Digital Finance CRC for digital finance research.

What does this mean for DigitalX?

Under the agreement, DigitalX will commit up to $2.5 million in cash contributions over its 10-year tenure. Around $100,000 will be handed in the current financial year, with $150,000 following in the next financial year.

The company is already looking into research projects relating to digital organisational models such as Decentralised Autonomous Organisations (DAOs). Developing this tool can provide crucial insights for real-world investment decisions, and risk and investment management strategies.

The work of the Digital Finance CRC is expected to commence in 2022.

DigitalX chief product officer, David Beros commented:

We are excited to have now partnered with the Digital Finance CRC and to join a multi-disciplined group of companies and research universities undertaking important research and commercial development of new ideas for the growth of digital finance.

Importantly for DigitalX, this provides us with the opportunity to be part of a broader group and to work with research teams to investigate and commercialise ideas that are relevant to our business that may be beyond what we could do on our own.

We look forward to bringing our own skill set to the Digital Finance CRC and making a meaningful contribution to Australian financial technology innovation over the next 10 years.

About the DigitalX share price

The DigitalX share price has gained close to 30% in the past 12 months. Its shares reached a 52-week high of 15.8 cents in mid-November, before being sold off in the following weeks.

DigitalX commands a market capitalisation of about $92.81 million, with 742.44 million shares on issue.

The post Here's why the DigitalX (ASX:DCC) share price is leaping 9% today appeared first on The Motley Fool Australia.

Unfortunately, it gets worse for investors. This latest drop means the DigitalX share price is now down by roughly 30% from the 52-week high of 16 cents a share that we saw less than two weeks ago. I don't need to tell you that's a pretty devastating drop in such a short space of time.

So what happened to this now-former ASX high flyer? After all, DigitalX was a company that had delighted investors with a 150% surge just between 1 October and 15 November.

Well, it's not entirely clear. There have been no price-sensitive (or any, for that matter) announcements out of this company since 10 November.

As we covered at the time, that was the week when DigitalX announced its most recent cryptocurrency-related fund performances.

The company announced a new record high for funds under management (FUM) at the time, with $38.99 million in FUM as of 31 October, a 36.8% increase on the previous month. DigitalX's Bitcoin Fund and Digital Asset Fund both rose by an impressive 37.46% and 27.82% respectively over October as well.

But that was then, and this is now. So what could have gone wrong with this company?

DigitalX share price under-mined by Bitcoin?

The first and best place to look is the cryptocurrency markets themselves, since this is the space in which DigitalX operates and invests.

Looking at the price of Bitcoin (CRYPTO: BTC), we can see the flagship cryptocurrency has fallen 15.8% since making a new all-time high of close to US$67,000 a coin back on 8 November.

Today, one Bitcoin is asking just US$56,900 at the time of writing. We have seen similar trends play out for other cryptos like Ethereum (CRYPTO: ETH).

Such a steep fall in Bitcoin conceivably would have a large impact on a crypto fund manager like DigitalX. At least, that's what the market could be assuming.

Therefore, this is a very possible explanation as to why the DigitalX share price is getting hammered today and has been hammered since this dip in Bitcoin began earlier this month.

At the current DigitalX share price of 11 cents, this company has a market capitalisation of roughly $89 million.

The post The DigitalX share price has tumbled 30% in 8 days. What's happening? appeared first on The Motley Fool Australia.

DigitalX shares experienced back-to-back gains on Monday and Tuesday this week, rising 15% on Monday and another 21.7% on Tuesday. Break out the champagne. But today, it's been a different story. DigitalX shares closed at 14 cents yesterday, and opened at 13 cents this morning (a loss of 7.15%) before dropping down to 12.5 cents. That's a loss of 10.7%.

But since open, the company has rebounded somewhat. It's currently trading at 13 cents, down 7.14%. So what on earth is going on here that could spark such whiplash-inducing volatility?

Well, to understand that, let's backtrack a little. DigitalX likely had such a strong start to the week due to the update it posted on Monday morning. As we covered at the time, DigitalX notched a new record high for funds under management (FUM) with $38.99 million as of 31 October. That figure represents a 36.8% increase on the prior month, helped by both inflows and booming cryptocurrency pricing.

This impressive performance was driven by DigitalX's two investment funds, the Bitcoin Fund and the Digital Asset Fund, which were up 37.46% and 27.82% respectively over the month. Year to date, these two funds are now up 105.7% and 285.7%, respectively.

These figures are probably behind DigitalX's breakneck share price appreciation earlier this week.

So why did the DigitalX share price get the wobbles today?

DigitalX share price takes a breather after its run

Well, it's not entirely clear. There has been no other news or announcements out of the company today (or yesterday, for that matter).

Cryptocurrency prices have pulled back slightly over the past 24 hours or so, with Bitcoin (CRYPTO: BTC) retreating from the record high of roughly US$68,500 it hit yesterday by around 1.8%. It's still asking around US$67,000 per coin at the time of writing, so not too much to phone home over.

It's possible that after the stellar run this company went on over Monday and Tuesday, investors have decided to take a break today and perhaps get some profits off of the table.

Whatever the reason for DigitalX's share price wobbles today, investors don't have too much to objectively complain about. DigitalX shares are still up 22.7% over the past 5 trading days, and up almost 93% over the past 6 months.

At today's DigitalX share price of 13 cents, this company has a market capitalisation of $103.55 million.

The post Why did the DigitalX (ASX:DCC) share price fall 10% this morning? appeared first on The Motley Fool Australia.

At the close of trade today, the DigitalX share price was up 10% at 11.5 cents after earlier surging 15% higher. It's worth noting that its shares are a whisker away from breaking its multi-year high of 13.5 cents reached last November.

What did DigitalX announce?

At the end of each month, the company provides a snapshot of its funds under management and digital asset exposure.

For October, DigitalX recorded a record high of total funds under management at $38.99 million. This represents a 36.8% increase on the prior month, buoyed by the recent inflows and a strong digital asset market.

DigitalX highlighted a new funds flow of $1 million along with the Bitcoin price soaring to a new all-time high. The company's Bitcoin and digital asset holdings are valued at $53.77 million, which includes 216 Bitcoin held as corporate treasury.

The company advised the monthly performance for its asset funds was driven by Bitcoin and the DigitalX fund, up 37.46% and 27.82% respectively. In addition, gold and equities from the All Ordinaries Index (ASX: XAO) were mixed, down 1.74% and up 0.12% correspondingly.

Quick take on DigitalX

Founded in 1998, DigitalX is an Australian technology and investment company focused blockchain technology development and digital assets funds management.

DigitalX gives investors a way to gain digital asset exposures through a secure and accessible platform.

The company operates through three segments, blockchain consulting and development, asset management, and other. The latter relates to governance, finance, legal, and risk management, company secretarial and management of the corporate entity.

DigitalX share price summary

Over the last 12 months, the DigitalX share price has lifted close to 60%, with year-to-date gains hovering around 20%.

Based on today's price, DigitalX commands a market capitalisation of about $81.36 million and has approximately 739.68 million shares outstanding.

The post DigitalX (ASX:DCC) share price surges 10% on Bitcoin update appeared first on The Motley Fool Australia.

But that's not where the party ends for DigitalX shareholders. Over the past month, this company has risen from 7 cents a share to today's 11 cents. That's a rise of an incredible 57% in just four weeks or so. On 1 October, the company hit 6 cents a share. That means its gains from that date stand at an even more impressive 83%.

So what's gone so right for DigitalX in recent times?

Bitcoin boom lifts DigitalX share price?

To answer that, let's rehash what this company actually does. So DigitalX is a fund manager on the ASX, and one of the only ones that invests directly in Bitcoin (CYYPTO: BTC) and other cryptocurrencies. It has two flagship funds.

The DigitalX Bitcoin Fund enables access to "titled and audited ownership" of Bitcoin through a "traditional unit trust".

The DigitalX Digital Asset Fund invests in Bitcoin and other "liquid, large capitalisation digital assets with a combination of smart beta strategies and active investment selection".

Both of these funds are only available to sophisticated/wholesale investors.

So it's pretty clear the fortunes of this company are intertwined with Bitcoin and other cryptocurrencies. So it's perhaps no surprise that DigitalX's share price has boomed over the same period that Bitcoin has rallied an incredible 42.5% (in US dollar terms).

Pink sheets and impressive returns

The company's latest asset exposure report (to 30 September) told us that it had $45.02 million worth of Bitcoin and other "digital assets" as of 30 September. That portfolio is probably worth a lot more today, seeing as Bitcoin and other cryptocurrencies have rallied so strongly over past few weeks. The company also stated that its 12-month returns now stand at 266.82% for the Bitcoin Fund. And 463.86% for the Digital Asset Fund

These might be some reasons behind why the DigitalX share price has appreciated so enthusiastically over the past month.

Another recent development may also be helping. Back on 6 October, DigitalX announced that it is now trading on the OTCQB markets over in the US. That's an upgrade from its old home on the 'pink sheets'.

The OTCQB is an over-the-counter (OTC) share market in the US. But one home to less speculative investments than the bottom-tier pink sheets. The company estimates that this new OTC listing will give it "the opportunity to further build visibility, expand liquidity and further diversify its shareholder base in the US which has shown a deep understanding of blockchain and blockchain related companies…".

This might have also given investors a sentiment boost over the DigitalX share price.

Whatever the true reasons behind this company's stellar month, there will be a lot of happy shareholders out there. At the current DigitalX share price of 11 cents, this company has a market capitalisation of $81.36 million.

The post Why has the DigitalX (ASX:DCC) share price rallied 57% in a month? appeared first on The Motley Fool Australia.

The technology and investment company has signed a business sale and asset agreement to acquire Sell My Shares, an online share trade execution service.

Following the company's release, the DigitalX share price has gained an impressive 7.46%. Right now, shares in the company are swapping hands for 7.2 cents apiece.

Let's take a closer look at the news driving the DigitalX share price higher today.

DigitalX's new acquisition

The DigitalX share price is surging following news it is set to acquire Sell My Shares.

According to DigitalX, Sell My Shares represents a channel for it to obtain new customers. Sell My Shares has conducted $300 million worth of trades for 42,000 Australians since 2013.

The acquisition will cost DigitalX $1.64 million upfront. The company will also make a deferred $250,000 consideration subject to performance milestones.  

Following the acquisition, Sell My Shares will be integrated into DigitalX's Drawbridge product.

Drawbridge provides listed companies with the means to manage internal trading of their securities.

DigitalX states the acquisition of Sell My Shares will see Drawbridge accelerate its commercial development and gain a compliant way for its customers' employees to trade shares.

Additionally, the company noted it has identified several ways to better the Sell My Shares business and profitability. Some of the ways in which DigitalX plans to grow Sell My Shares include enhancing its market clearing and settlement technologies.

DigitalX share price snapshot

Despite today's gains, the DigitalX share price has been struggling on the ASX lately.

It has fallen 28% since the start of 2021. However, it is currently 80% higher than it was this time last year.

At its current share price, the company has a market capitalisation of around $53.3 million. It has approximately 739 million shares outstanding.

The post Here's why the DigitalX (ASX:DCC) share price is surging 7% today appeared first on The Motley Fool Australia.

Ethereum (CRYPTO: ETH) is having a stronger run, up 7.8% in 24 hours to US$2,126. That also remains well below Ether's own mid-May record high of US$4,382.

Yet the recent falls don't appear to be dissuading millions of retail investors from buying – or intending to buy – cryptocurrencies.

In fact, a recent survey conducted by cryptocurrency exchange Kraken and YouGov revealed 40% of Aussie millennials plan to invest in crypto assets as a way to save for a home.

And it's not just Australians. According to Chainalysis, even gold-hungry Indians are snapping up crypto, with some US$40 billion worth of crypto investment over the past year.

With interest in Bitcoin, Ether and other cryptos showing no signs of abating, the Motley Fool reached out to Leigh Travers, CEO of blockchain consulting and development services company Digitalx Ltd (ASX: DCC), for his unique insight.

How China's crackdown is long-term bullish for Bitcoin

You've likely heard about China's crackdown on Bitcoin mining, along with the ban on Chinese financial institutions facilitating crypto transactions.

With 65% of global Bitcoin mining taking place in China in 2020, the crackdown has fuelled the price falls of the world's biggest cryptos.

However, Travers told the Motley Fool he sees this as a short-term issue. In fact, he thinks Bitcoin and Ether are likely to come out better for it:

Our view on the two biggest risks for Bitcoin at the start of the year was China dominance in the market, as well as ESG (environmental, social, and corporate governance) headlines about carbon usage of Bitcoin mining.

The current short-term exodus of Bitcoin miners and Bitcoin traders out of China is absolutely long-term bullish. China had a significant percentage of Bitcoin miners that were powered by coal. That's particularly true during their summer, as in winter it's more hydro.

Travers points out that with Bitcoin miners fleeing Chinese soil, more activity is heading elsewhere in Asia and to the US state of Texas, with a greater percentage of renewable energy in the mix.

"To see how quickly both of these key risks are being reduced is giving us a significant increase in confidence for the long-term outlook for Bitcoin and the digital asset sector," Travers told us. He added:

As Bitcoin moves towards a more renewable energy mix, and as Ether transitions towards a security model that utilises 99% less energy, the ESG concerns fade and some of the positive elements of ESG that digital asset markets provide will become evident.

El Salvador adopting Bitcoin as legal tender is one example of this, Travers said. He noted that financial inclusion in the Latin American country is only around 30%.

"A digital wallet that enables access to markets that have governance frameworks programmed is a positive opportunity for many," he said.

Avoid these 2 big crypto pitfalls

While some crypto investors have made fortunes, others have lost some or all of the money they invested.

We asked Travers about the most common scam used to part would-be Bitcoin investors from their hard-earned money. He said:

Any direct emails from private cryptocurrency investment funds must be avoided. There are zero licensed private retail investment fund products in Australia, or the world, from my knowledge. At best they are offering you an unlicensed investment product. At worst, it could be a scam.

Travers also stressed never to invest more than you feel comfortable with:

The sector is highly volatile. If you haven't done any research and the investment size is too large, you're much more likely to be a seller when prices drop. If you have a strong investment thesis and your investment is sized appropriately, it is much easier to hold for your investment time horizon.

The best 3 cryptos to buy

We rounded off our questions by asking Travers which digital tokens he believes may outperform. He said:

Bitcoin and Ether are the digital assets experiencing the most institutional growth and really should be considered first before any other digital assets. We are seeing some incredible growth from Uniswap over the past 6 months, so that's another that we like.

Uniswap (CRYPTO: UNI) is currently trading for US$18.30, up 8.0% in the past 24 hours.

According to CoinMarketCap, Uniswap is "a popular decentralised trading protocol, known for its role in facilitating automated trading of decentralised finance (DeFi) tokens".

The post Investing in Bitcoin? How to avoid these 2 costly pitfalls appeared first on The Motley Fool Australia.

The DigitalX share price is swapping hands for 7.8 cents apiece at the time of writing, up 13%.

How did DigitalX perform?

For the quarter ending 31 March 2021, DigitalX delivered strong growth across all key metrics.

Liquid assets for the period increased to $46.4 million, representing a 122% jump from the prior quarter (December 2020). The result came from a strong performance of Bitcoin (CRYPTO: BTC), the DigitalX digital assets funds, and proceeds of a capital raise.

Cash receipts lifted to $265,000 for the 3 months, a 77% improvement when looking at quarter-on-quarter (QoQ) growth. Revenue for the March quarter stood at $713,000, a 232% QoQ jump.

The performance was underpinned by increased fees from the funds under the management division, totalling $31.9 million, rising 237% QoQ.

The company said it was continuing to focus on commercialising its Drawbridge RegTech product, which "supports listed companies in better managing their compliance and corporate governance policies".

Several engagements with customer leads for the Drawbridge application are beginning to follow through. DigitalX revealed that 4 ASX-listed companies, including itself, have signed on as paid customers for the now-closed early adopter program.

In addition, the company has undertaken sales and marketing strategies to accelerate awareness of Drawbridge.

What did management say?

DigitalX CEO Leigh Travers commented on the company's outlook:

DigitalX is well capitalised and well-positioned to deliver growth in both of our businesses in 2021. There is a growing focus for improving corporate governance, particularly in light of the ESG priorities from investors, and DigitalX enables this with Drawbridge.

Meanwhile, the digital asset funds management business is starting to gain traction on the back of a growing appreciation of the sector as a legitimate asset class and DigitalX is at the forefront of developments within this market.

About the DigitalX share price

The DigitalX share price has gained close to 200% in the past 12 months but is down just over 15% year-to-date. The company's shares reached a 52-week high of 13.5 cents in late November before treading lower.

DigitalX commands a market capitalisation of about $57 million, with 736 million shares on issue.

The post DigitalX (ASX:DCC) share price rockets 13% on quarterly update appeared first on The Motley Fool Australia.

Let's take a look at why the company is having such a stellar week. 

What's fuelling the DigitalX share price?

Early yesterday, DigitalX provided shareholders with a monthly update as at the end of March 2021. The announcement highlighted the company's funds under management and the value of its Bitcoin (CRYPTO: BTC) related assets.

DigitalX noted a record balance of Bitcoin and digital assets of $35.2 million as at 31 March. In addition, it highlighted a 30% growth in funds under management to $31.9 million.

The company also declared a 28.39% growth in its Bitcoin fund and 25% growth in its DigitalX fund for the month. Given the substantial growth in Bitcoin and digital assets, Digital X intends to provide the market with monthly updates.

About DigitalX 

DigitalX is a tech and investment company focused on blockchain consulting and digital funds management. The company's consulting arm designs and develops blockchain technology applications for businesses. In addition, DigitalX also offers low-cost traditional asset management products for investors who want exposure to digital assets.

Despite going on an initial tear early in the year, the DigitalX share price is trading around 20% lower in 2021. Shares saw significant interest from investors in early February after the company reported record monthly inflows. In addition, DigitalX noted an increase in exposure to Bitcoin and highlighted plans to increase exposure to the wider digital asset market.

In early March, the DigitalX share price saw another jump after the company successfully raised $8.8 million in capital. According to the company, the funds raised will be used to grow its funds under management as well as for developing and implementing its Drawbridge RegTech product. 

The post The DigitalX (ASX:DCC) share price is up 30% this week appeared first on The Motley Fool Australia.

This comes after the blockchain focused technology and investment company reported commitments for its capital raising. 

What did DigitalX report about the new capital raising?

DigitalX shares are pushing higher after the company reported it has secured commitments for $8.8 million to fund its growth plans. The capital was committed by US institutional investors not yet invested in DigitalX.

The placement was at a share price of 9 cents, slightly below the current 10 cents per share. DigitalX said it will also issue investors warrants, exercisable at an exercise price of 10 cents.

Specifically, the first ASX-listed Bitcoin-related company said it plans to use capital raising to grow its funds under management. Additionally, it also aims to aid in developing and implementing its Drawbridge RegTech product. Drawbridge, according to DigitalX, "supports listed companies in better managing their compliance and corporate governance policies".

Comments from the director

On the capital raise, Leigh Travers, executive director of DigitalX said:

With tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the funds management division, the company believes it is an appropriate time to raise additional funds to accelerate the business…

We believe that these additional funds will allow us to expedite a number of initiatives identified in our recent strategic review across the digital asset funds management business as well as for our RegTech business led by Drawbridge.

DigitalX share price snapshot

Indeed, investors who bought shares in DigitalX a year ago today will be sitting on intraday gains of 390% at the time of writing. By comparison, the All Ordinaries Index (ASX: XAO) is up 9% in that same time.

Year-to-date the DigitalX share price is down 2%.

The post Up 395% in 1 year, why the DigitalX (ASX:DCC) share price is gaining again appeared first on The Motley Fool Australia.

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.

The post DigitalX (ASX:DCC) share price soars 18% following Bitcoin update appeared first on The Motley Fool Australia.

But with Elon Musk having just thrown a US$1.5 billion investment at Bitcoin via Tesla Inc (NASDAQ: TSL), the 'B' word is once again on many investors' lips.

While Tesla may be hogging all the limelight when it comes to investing in Bitcoin, these 3 ASX shares have been in the game for a while. Let's take a closer look.

3 ASX shares with exposure to Bitcoin

RAIZ Invest Ltd (ASX: RZI)

RAIZ Invest provides financial services and products through its micro-investing platform. Users can select from various investment options using the RAIZ mobile application or through the RAIZ website in Australia, Indonesia and Malaysia.

One of RAIZ's investment options is its Sapphire Portfolio which includes a 5% target allocation to Bitcoin.

First announced in May 2020, CEO George Lucas commented:

Although this latest portfolio offering from RAIZ is very high risk, feedback from many customers has clearly shown that they have an appetite for an investment strategy that has an exposure to cryptocurrencies, and the Sapphire portfolio has been designed with this in mind.

The RAIZ share price has gained more than 150% over the past six months. Today, RAIZ shares jumped 1.75% higher to $1.74. The company has a current market capitalisation of around $127 million.

DigitalX Ltd (ASX: DCC)

DigitalX is a technology and investment company specialising in blockchain application development and digital asset management services.

The company currently offers two cryptocurrency investment products, the DigitalX Bitcoin Fund and the DigitalX Digital Asset Fund.

DigitalX promotes its 7-year track record of managing Bitcoin investments and other digital assets.

According to its latest quarterly report, DigitalX held 215.95 Bitcoins as of 31 December 2020.

The DigitalX share price has delivered gains of around 110% over the past six months and closed today's session at 7.6 cents.

Fatfish Group Ltd (ASX: FFG)

Fatfish is a tech venture firm with investments in Australasia and Europe. The company has Bitcoin exposure via its Sweden-based subsidiary Abelco Investment Group.

Through Abelco, Fatfish is invested in the cryptocurrency and blockchain ventures Minerium and Kryptos-X.

Minerium is a crypto mining technology firm that runs large-scale crypto mining centres around the world. Launched in October 2017, Minerium is focused on improving crypto mining efficiency by operating in international locations, such as Mongolia and Canada, where low-cost energy is readily available.

Kryptos-X is a Singapore-based digital asset trading platform and is a subsidiary of XBourse Global. 

In addition to Bitcoin, Fatfish also has an investment in Singapore-based company Smartfunding. Smartfunding is in the process of launching a new online platform in the buy now, pay later (BNPL) space. Unlike other BNPL players such as Zip Co Ltd (ASX: Z1P), Sezzle Inc (ASX: SZL) and Afterpay Ltd (ASX: APT), Smartpay's platform will primarily target corporate customers across Singapore and Southeast Asia. The platform will enable customers to pay for purchases of up to S$1 million over 12 to 24-month instalments. 

Fatfish recently announced that Smartfunding will officially launch next Thursday 18 February.

Closing today's session at 3.6 cents, the Fatfish share price has gained 260% over the past six months.

Foolish takeaway

Blockchain technology, and the cryptocurrency market it gave life to, isn't new. Digital currency investors like RAIZ, DigitalX, Fatfish, and many others around the world, have been buying Bitcoin long before Elon Musk tweeted about it.

With Bitcoin presently trading at around $46,263, retail investors will need to form their own opinions on whether an investment here makes good long-term sense.

The post These 3 ASX shares invested in Bitcoin before Tesla (NASDAQ:TSL) appeared first on The Motley Fool Australia.

DigitalX shares closed at 6 cents yesterday and opened at 6.6 cents this morning before surging to the current level. It's been both a great month and a great year for DigitalX investors. The shares started 2020 at just 3 cents a share. That means they are up 137% year to date, and up 77% over just the past month.

So what does DigitalX do? And why the massive 18% surge today?

Who is DigitalX?

DigitalX is a company involved in the blockchain and cryptocurrency space. It describes itself as "specialising in blockchain application development and digital asset management services." It has two primary operations: blockchain solutions and asset management.

The blockchain solutions division works with companies and organisations to 'unlock' the potential of blockchain. The asset management division works by allowing investors to invest in cryptocurrencies like bitcoin through a managed fund structure.

If you weren't aware, blockchain refers to a technology that forms the 'infrastructure' of a cryptocurrency. It works by creating a decentralised, digital public 'ledger', which can be used to process cryptocurrency transactions and ownership, amongst many other potential applications.

Interestingly, DigitalX is (according to the company) also working on solutions for an upcoming re-structure of the ASX's ageing CHESS system. The ASX has used CHESS (which stands for Clearing House Electronic Subregister System) for around 25 years now. But the ASX is working on a new system to replace CHESS based on distributed ledger technology (DLT). This is built on blockchain technology.

Why is the DigitalX share price surging today?

Today's dramatic move in the DigitalX share price can likely be put down to an update for the quarter ending 30 September 2020, which the company released last week. There has been no major news out of the company since. 

This update was arguably very positive. DigitalX announced that the value of the company's 'liquid assets' (which includes cash and cryptocurrencies) increased by $0.9 million (or 8.56%) against the levels of the previous quarter. The company notes that this was vastly assisted by the price of bitcoin rising more than 13% over the period. That helped DigitalX's Bitcoin Fund and the Digital Asset fund return 14.11% and 23.32%, respectively, during the quarter.

Additionally, the company reported that its cash outflows decreased by 2.3% to $339,000 over the same period.

Other ventures deliver

DigitalX also announced that development of its "first DLT application" was commenced during the quarter. DigitalX expects this to be completed by early November. At that time, the company will begin commercial application. It also notes that this process has helped it "deepen the expertise of its product development team for the purpose of offering greater capabilities to customers in the blockchain consulting and development market."

Further, DigitalX also provided an update on its xbullion venture, of which it owns a 15% stake in. Xbullion is a service offering "digitally transferable ownership of physical gold bullion". DigitalX told investors that the product was launched in September, and has been "successful'. Thus, the company is now looking at a "roadmap of enhancements" for xbullion.

Finally, DigitalX's management provided a positive outlook for the company going forward. It notes the recent adoption and expansion of cryptocurrency use by US payments giants Square Inc (NASDAQ: SQ) and PayPal Holdings Inc (NASDAQ: PYPL) as being extremely positive for its long-term business outlook:

Recent global entrants such as Square Inc. and Paypal Holdings have shifted the view of Bitcoin from a speculative investment and nascent technology to becoming a reliable long-term treasury asset as well as legitimised payment protocol

It's these factors that seem to be behind the surging DigitalX share price today.

The post ASX stock of the day: DigitalX (ASX:DCC) shares surge on quarterly update appeared first on The Motley Fool Australia.

Three shares at the small end of the market outperforming today are listed below. Here's why they have surged higher:

The Botanix Pharmaceuticals Ltd (ASX: BOT) share price is up over 5% to 8.1 cents after the cannabis-focused dermatology company advised that it has received a $4.6 million research and development tax incentive refund. In addition to this, investors may be reacting positively to a broker note out of Bell Potter yesterday. According to the note, the broker has initiated coverage on Botanix with a speculative buy rating and 15 cents price target. The broker believes that the company's chronic acne and atopic dermatitis treatments could be attractive "for potential partners due to the very large market size and chronic nature of both indications."

The DigitalX Ltd (ASX: DCC) share price has returned to trade and climbed 10% to 6.6 cents. At one stage the blockchain company's shares were up as much as 26.5% following the release of an announcement this morning. According to the release, the company has entered into a joint venture with US blockchain investment bank AmerX to enter the Security Token Offerings market. The release explains that the new entity, DX Americas, is being incorporated "to engage in the provision of advisory services, including for tokenomics, smart contract development, marketing, public relations and issuer readiness to companies in the technology and blockchain industries." I'd suggest investors refrain from investing on this development and wait to see if it is more than a fad.

The Netcomm Wireless Ltd (ASX: NTC) share price has climbed 4% to 75 cents despite there being no news out of the broadband equipment company. I suspect that investors were pleased to see that its performance has not deteriorated since its last update when it warned of flat underlying EBITDA in FY 2019. This flat performance is the result of a lower gross margin which reflects a change in sales mix and higher component costs. Management reaffirmed this guidance at its AGM this week.

The post These 3 small cap ASX shares are surging higher today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the week in the red:

The A2 Milk Company Ltd (ASX: A2M) share price has fallen 3.5% to $10.20 today. The infant formula and dairy company's shares have come under significant pressure this week after its CEO sold all her shares after just two months in the job. In addition to this, concerns over the strained Australia-China relationship appear to be weighing on China-focused shares.

The Digitalx Ltd (ASX: DCC) share price has sunk 10.5% lower to 8.4 cents after the blockchain and ICO advisory company was hit with legal action. According to the release, DigitalX advised that it has been served with an Originating Application and Statement of Claim in the Federal Court of Australia. This has been filed by a group of parties relating to an investment made by the parties in an initial coin offering to which the company was an advisor.

The Gazal Corporation Limited (ASX: GZL) share price has dropped 3% to $4.60 despite the release of a strong half year result. For the six months ended August 4 the retailer reported a profit after tax from continuing operations of $4.93 million, up 99.9% on the prior corresponding period. A 31% increase in like for like sales for its joint venture brands helped drive the solid result. The board declared an interim dividend of 10 cents per share, payable December 14.

The Weebit Nano Ltd (ASX: WBT) share price has fallen over 11% to 4 cents after the Israel-based semiconductor company announced the successful completion of a $3 million placement. Management advised that the funds were successfully raised at a significant discount of 3.5 cents per share and leave the company well-funded to progress potential partnership discussions, scale down its technology, and plan for the move to a production facility. Weebit Nano is aiming to develop and commercialise the next generation of ReRAM technology.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

But while the prices of Bitcoin and its peers may be storming higher today, the same certainly cannot be said of the DigitalX share price.

At the time of writing the blockchain and ICO advisory company's shares are down almost 12% to 8.3 cents. This latest decline means that its shares have now shed over 75% of their value this year.

Why are DigitalX's shares being smashed today?

This morning DigitalX advised that it has been served with an Originating Application and Statement of Claim in the Federal Court of Australia.

This has been filed by a group of parties relating to an investment made by the parties in an initial coin offering to which the company was an advisor.

According to the release, the company and its legal advisors continue to review and examine the claims made but deny any claim of wrongdoing.

In addition to this, management believes that it has strong grounds to defend any claims bought forward by these applicants. As a result, the company intends to vigorously defend this matter and protect its reputation.

The claim is for a combined amount of approximately US$1,833,077 plus damages.

As DigitalX was appointed ICO advisor to projects that raised in excess of AU$500 million for domestic and international ICO projects during the last financial year, shareholders may be concerned that further legal action could occur in the future if some of these ICOs were unsuccessful.

Should you buy the dip?

The company had cash and digital assets totalling over $10 million at the end of FY 2018, which should more than cover the cost of this claim if the court were to rule against it.

However, I wouldn't be in a rush to buy the dip. In fact, I'd suggest investors stay well clear of DigitalX and watch on from the safety of the sidelines instead.

Small cap tech shares such as Citadel Group Ltd (ASX: CGL) and Volpara Health Technologies Ltd (ASX: VHT) may be better options for investors.

The post Crypto company DigitalX Ltd (ASX:DCC) smashed on ICO legal action appeared first on The Motley Fool Australia.

One area of the market which is performing particularly well today is the small cap space. In late morning trade the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) is up an impressive 0.8%.

Three small cap shares that are climbing more than most today are listed below:

The Digitalx Ltd (ASX: DCC) share price has jumped 16% to 14.5 cents, extending its five-day return to over 60%. Investors have been fighting to get hold of the blockchain-based software solutions company's shares after the crypto market rebounded strongly over the weekend and through to today. DigitalX has a large holding of crypto assets. News that ETF giant BlackRock could be launching a crypto-themed ETF has been one of the main catalysts for the market's rebound.

The Lithium Australia NL (ASX: LIT) share price has rocketed 25% to 12.5 cents after the lithium company's wholly-owned specialist battery-component research and development laboratory, VSPC, provided an update on its facilities. According to the release, the pilot production facilities in Brisbane are now fully re-commissioned and lithium-iron-phosphate (LFP) battery cathode material is being produced. Delivery of cathode material samples to international battery makers are expected in the fourth quarter of calendar year 2018. This is promising news and could make it worth a closer look.

The Swick Mining Services Ltd (ASX: SWK) share price has zoomed over 9% higher to 23.5 cents after the mining services company advised that it had a strong end to FY 2018. According to the release, fourth-quarter unaudited drilling business revenue came in at $33.9 million, with EBITDA of $6.2 million. As a result, its unaudited accounts show full year FY 2018 revenue of $137.8 million and EBITDA of $18.8 million. This compares to $130 million and $13.7 million, respectively, in FY 2017.

The post These 3 ASX small caps are storming higher today appeared first on The Motley Fool Australia.