Australia’s only ASX-listed cryptocurrency fund manager, DigitalX, has increased its Bitcoin holdings with the purchase of 74.7 BTC for approximately $8.8 million.
Key Takeaways:
- DigitalX has boosted its Bitcoin holdings to nearly 500 BTC, now valued at over $100 million.
- The firm allocated $12.8 million from a recent capital raise toward Bitcoin accumulation.
- DigitalX joins a growing list of public companies embracing Bitcoin as a long-term treasury asset.
The move brings its total holdings to 499.8 BTC, valued at around $91.3 million, the firm announced Tuesday.
The latest purchase was executed at an average price of $117,293 per coin.
DigitalX’s Bitcoin Treasury Tops $100M with Combined Holdings
Of the nearly 500 BTC, 306.8 are held directly on the company’s balance sheet, while 193 BTC are managed through its stake in the DigitalX Bitcoin ETF.
Combined, the company’s digital asset treasury now exceeds $100 million.
This marks DigitalX’s second major Bitcoin acquisition in July, following a 57.5 BTC purchase earlier in the month.
The company raised $13.5 million earlier this month to fund further Bitcoin buys and expand its strategic advisory board, which now includes Animoca Brands’ Yat Siu and Web3 veteran Hervé Larren.
Of the capital raised, $12.8 million has already been allocated to Bitcoin accumulation. The remaining funds are intended for general operations and working capital.
“This milestone reinforces our Bitcoin-first, Bitcoin-focused strategy,” said Leigh Travers, DigitalX’s non-executive chairman and director of capital markets at Animoca Brands.
“As one of the world’s first listed Bitcoin miners in 2014, DigitalX has been at the forefront of crypto innovation. Today, we’re leveraging that early leadership to set the institutional standard for Bitcoin exposure in Australia.”
The strategy aligns DigitalX with a broader corporate trend that began with MicroStrategy, now known as Strategy.
Under Michael Saylor’s leadership, the U.S.-based business intelligence firm holds over 597,000 BTC, establishing it as the largest institutional holder.
The trend is spreading across Asia as well, with Metaplanet — dubbed “Asia’s MicroStrategy” — steadily building its own Bitcoin treasury through equity and debt fundraising.
Other publicly traded firms from outside the crypto sector are also following suit.
Hong Kong’s DDC Enterprise, known for its food brands, recently raised $528 million to build a Bitcoin treasury.
Canada’s Solar Bank, a renewable energy company, has also declared plans to acquire BTC, despite environmental criticisms.
Advocates argue that a growing share of Bitcoin mining is powered by clean energy.
Doubts Grow Over Long-Term Viability of Bitcoin Treasury Strategy
Skepticism around the sustainability of the Bitcoin treasury trend is growing.
Last month, Glassnode lead analyst James Check raised concerns over the longevity of the corporate Bitcoin treasury strategy, arguing the easy gains might already be gone for new entrants as the market matures.
The warning echoes recent comments from Matthew Sigel, head of digital asset research at VanEck, who has voiced concerns over the Bitcoin treasury strategies adopted by some publicly traded firms.
Sigel singled out the use of at-the-market (ATM) share issuance programs, arguing that these can become dilutive if a company’s stock price nears its Bitcoin net asset value (NAV).
Meanwhile, New York law firm Pomerantz LLP has filed a class action lawsuit against Michael Saylor’s Strategy, accusing the Bitcoin-focused firm of misleading investors about the profitability and risks of its crypto investment strategy.
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