DigitalX shifted up a gear in the June quarter, thanks to Bitcoin’s turbo-charged performance. Pic via Getty Images
- Treasury holdings rose 32.8% to $72.9 million from the previous March quarter
- The DigitalX Bitcoin ETF (BTXX) climbed 22.5% over the same quarter
- Strategic shift in treasury holdings positions Bitcoin as a core long-term asset
Special Report: ASX-listed DigitalX has reported a strong June quarter, underpinned by growth in revenue and digital asset holdings, as well as a major shift in its approach to treasury management.
Leveraging ongoing momentum in global Bitcoin (BTC) markets, the company implemented a strategic realignment that positions Bitcoin at the centre of its balance sheet.
Total revenue for the quarter was $1.45 million, a 52% increase from the previous quarter. This was supported by the receipt of R&D tax incentives for FY23 and higher income from brokerage and staking rewards.
At the same time, DigitalX (ASX:DCC) reduced its operating costs, with cash outflows from operations falling 55% over the March quarter.
DigitalX’s digital asset holdings increased from $54.9 million to $72.9 million during the quarter, representing a 32.8% increase.
The company’s flagship DigitalX Bitcoin ETF (ASX: BTXX), which provides regulated exposure to Bitcoin for Australian investors, also delivered a 22.5% increase over the same period.
Strategic pivot post quarter-end
In a significant development following the quarter’s close, DigitalX announced a new treasury strategy that repositions Bitcoin as a core long-term asset.
This shift was made possible through a $20.7 million strategic placement to global digital asset investors, including Animoca Brands, UXTO Management and ParaFi Capital. The funds were used to expand DigitalX’s Bitcoin position, which nearly doubled during July.
The new treasury strategy aligns DigitalX more closely with the institutional investment community, which is increasingly seeking credible, regulated vehicles to gain exposure to Bitcoin.
By repositioning BTC as the cornerstone of its treasury, DigitalX aims to offer shareholders a more transparent and direct link to the performance of digital assets.
Interim CEO Demetrios Christou described the quarter as a turning point for the company.
“During the quarter and up until the time of this report, it has been a defining period for DigitalX. In addition to delivering stronger operating performance and revenue growth, we executed a fundamental shift in our treasury strategy toward Bitcoin,” Christou said.
“The strategic placement completed shortly after quarter-end has allowed us to accelerate this transformation and solidify DigitalX’s position as Australia’s leading ASX-listed digital assets company providing institutional-grade Bitcoin exposure for our investors.”
Positioning for institutional adoption
DigitalX’s refined strategy also reflects broader market trends, with a growing number of institutions allocating capital to Bitcoin as both a portfolio diversifier and store of value.
By simplifying access through its ETF and directly holding Bitcoin on its balance sheet, DigitalX is positioning itself as a transparent and reliable vehicle for exposure to digital assets within traditional financial frameworks.
The company’s lean operating model, debt-free balance sheet, and disciplined cost management provide a strong foundation for future growth.
Backed by high-profile global investors and with a renewed focus on institutional engagement, DigitalX appears poised to benefit from any further uptick in Bitcoin demand or price.
Looking ahead
As the market awaits the next phase in the digital asset cycle, DigitalX’s repositioning underscores its ambition to be the go-to ASX-listed vehicle for Bitcoin exposure.
With increased investor interest, a clearly defined growth strategy, and a strengthened treasury position, the company is seeking to scale its presence and performance in the evolving institutional crypto investment space.
This article was developed in collaboration with DigitalX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
