In short
- Digitalx has collected millions of dollars to expand its Bitcoin Treasury, with the support of Animoca brands, Utxo Management and Parafi Capital.
- Animoca’s Yat Siu and Web3 advisor Hervé Larren join the newly formed advisory board of DigitalX.
- Siu told Decrypt that the raise is ‘only the beginning’, that Bitcoin called the ‘original ondoarder’ after the digital assets economy.
DigitalX (DCC), the only ASX-Genter Crypto Fund manager in Australia, has raised a $ 20.7 million (US $ 13.5 million) from a consortium of investors in digital assets to expand his Bitcoin companies and to set up a new strategic advisory board.
The placement, priced at a $ 0.074 (US $ 0.048) per share, attracted participation of Animoca brands, Utxo Management and Parafi Capital.
Investors received one order for every two shares, exercising at a $ 0.15 (US $ 0.10) and end in 18 months.
The company said that $ 12.8 million would be used to buy extra bitcoin, where the rest would go to operational costs and working capital.
In addition to The Raise, DigitalX called the executive chairman of Animoca, Yat Siu, and Web3 adviser Hervé Larren after his newly formed advisory board.
In an interview with Decrypt on MondaySiu revealed that he was previously an investor in DigitalX and noted that both Digitalx and Animoca were once ASX-Gente companies that navigated through a clearly different environment.
“As far as DCC is concerned, it was particularly logical because you can invest in Australia through your Superannuation funds (think of 401K equivalent) in ASX companies and it is a good way to get exposure to the most recognized digital activa class Bitcoin,” Siu said.
“Because of the history of DCC, it is in fact one, if not the only way to really do that: the only ASX-Genten company is that Bitcoin collects.”
Siu also said he regards Bitcoin as a gateway to the wider ecosystem of digital assets.
“We think that everyone has to keep some bitcoin, although for no other reason than a hedge, and it is most informed as a store of value,” he said. “So once you have some bitcoin, directly or indirectly, you also get to other tokens and expand the activity on the chain,” he said.
The Bitcoin strategy
When asked about the risks of companies transferring to Bitcoin-heavy strategies, Siu said it depends on how the assets are taken over. “In a share increase, like this, the risk is quite low. If it is debts, possibly higher, but it depends on what the security is.”
The trend received a grip for the first time after the strategy began to buy aggressive Bitcoin in August 2020, mainly due to a range of convertible debt. Under the leadership of Michael Saylor, the company has since become the largest company holder of Bitcoin, with more 597,000 BTC.
The Japanese metaplanet has followed a similar path and positions itself as “Asia’s micro strategy” by acquiring Bitcoin by a combination of shares and planned debt increases.
“The trend to put Bitcoin on the balance is also marketing marketing, not too different from other trends,” Sui said. “The question of asking is” put the company Bitcoin or another token on its balance that are seriously brought to his balance in the long term, or just seek attention? “
He noted that although the trend of Bitcoin-on-Balance sheet is growing, the motivations vary.
“That is no different than tokens,” he added. “You are looking for attention, and when placing Bitcoin on your balance, it gives attention, it supports it, but that will not take if everyone has it.”
“My general advice is: Looking for companies that have real expertise, and then it will be your access/hedge/investment to a kind of Bitcoin.
When asked whether the current capital increase marked the degree of Bitcoin strategy of DigitalX, Siu simply replied: “Deeper. This is the start, not the end.”
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