Australian crypto asset manager DigitalX (DCC) says it has secured $13.54 million (USD) from major investors to grow its Bitcoin (BTC) treasury.
More precisely, the only ASX-listed crypto fund manager says it has received “firm commitments to raise” approximately $20.7 million (AUD). Shares stood at 7.4 Australian cents each.
Global crypto investors in the placement include Animoca Brands, UTXO Management, and ParaFi Capital, the announcement states. Moreover, CEOs of publicly listed global Bitcoin companies and executives and founders of crypto investment funds joined as well. These have not been named.
However, DigitalX has added that Simon Gerovich, the President and CEO of Tokyo Stock Exchange-listed Metaplanet, has invested “in a personal capacity.” Metaplanet, the fifth-largest publicly traded BTC treasury company, now has a total of 15,555 BTC on its balance sheet.
Moreover, of the investment amount, some $19.7 million will go into expanding the company’s Bitcoin treasury. DCC will use the remainder for the costs of the offer and working capital.
Also, Animoca Brands will receive a 3% advisory fee on the raised funds.
Meanwhile, DigitalX listed as a Bitcoin mining company in 2014. It currently holds 65 BTC directly and 881,000 units in its Bitcoin ETF (BTXX), equivalent to 193 BTC, it says. Following this latest raise, its total assets will exceed $95 million in BTC, digital assets, and cash, the team says.
According to the press release, “this capital raise marks a pivotal moment for the Company, reflecting a renewed emphasis on Bitcoin as the ongoing foundation of DigitalX’s digital asset strategy.” It also signals “strong institutional endorsement from leaders in the global digital asset ecosystem.”
Furthermore, DigitalX Interim CEO Demetrios Christou commented that “the backing of these globally-recognised leaders in the Bitcoin space not only provides the capital to expand our Bitcoin holdings but also provides invaluable strategic expertise and access to their networks.”
Yat Siu on DigitalX Move: ‘Bitcoin is the Reserve Asset of Web3’
DigitalX has also announced additions to its Advisory board. Specifically, Yat Siu and Hervé Larren have joined the board.
Siu is the co-founder and executive chairman of Animoca Brands, a major metaverse and gaming venture capital firm. He’s a member of the Web3 task force advising the Hong Kong government on digital assets. Animoca Brands has recorded over 570 Web3-focused portfolio companies. It also established a joint venture with Standard Chartered Bank and HKT to issue a licensed stablecoin.
Meanwhile, Larren is the CEO and founder of Airvey.io, a US-based Web3 advisory firm. He previously worked at LVMH. Since then, he has worked on more than 20 projects with a combined market cap exceeding $15 billion, the announcement says.
Moreover, UTXO Management is able to nominate one non-executive Director.
DigitalX Non-Executive Chairman Leigh Travers commented that “it’s clear there’s very strong demand for a singular and focused digital asset treasury strategy centered on Bitcoin and listed on the ASX.”
Also, Yat Siu added that “Bitcoin is the reserve asset of Web3 – digital gold.”
He continued: “We are excited to expand broader access to Bitcoin in Australia with DigitalX to help empower communities with the tools for digital ownership and financial sovereignty. The partnerships with global heavyweights such as UTXO, ParaFi, and others make DigitalX the premier vehicle for Bitcoin access in Australia.”
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