DigitalX releases positive quarterly update
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DigitalX (ASX:DCC) released its quarterly report on Tuesday, having completed a capital raising of circa $4 million (cash and Bitcoin) during the three months to September 30, 2017.
As at balance date the company had total cash and cash equivalents of US$1.2 million. In addition to its cash position, DCC held 489.68 Bitcoins valued at US$4250/BTC at the end of the quarter.
This equates to a value of circa US$2 million, and given Bitcoin is highly liquid it can be converted into cash as required. Management highlighted the fact that the value per Bitcoin is now more than US$6100.
On that score though it is worth noting that management has taken the decision to hold the group’s Bitcoin which has appreciated over 30 per cent since it was acquired.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
From an operational perspective, DCC has three main business lines which include the creation of proprietary Blockchain technology assets such as AirPocket. The company’s Blockchain Consulting business is also performing well having recently entered into a joint venture agreement with StarGroup (ASX:STL) to jointly offer and tailor a two-way ATM solution for buying and selling Bitcoin.
DCC is also an advisor to a crypto currency exchange, the National Cryptocurrency eXchange, and is providing consulting expertise over a six month term. This is creating monthly recurring revenue for the group.
Towards the end of the quarter DCC announced that it acted as the corporate advisor to Bankera (www.bankera.com) for the high profile successful pre-Initial Coin Offering (ICO) raising, the largest pre-ICO raising in the world, with €25 million raised through the sale of 2.5 Billion Bankera tokens at €0.01.
It should be noted here that DCC is a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.
DigitalX will be paid via three avenues throughout the duration of the engagement in combination of Bitcoin, Ethereum and Bankera tokens.
DCC was also appointed as the corporate advisor to the upcoming Etherparty ICO during the quarter and the company has a holding of approximately 10 million FUEL tokens in the group.
In light of industry trends, DCC has indicated that it could consider a major role in the crypto market which is growing exponentially.
Investors have embraced the company’s exposure to this fast-growing industry with its share price doubling in the last fortnight.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
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