ASX-Listed DigitalX Leans Into Bitcoin Treasury Strategy With Latest $8.8M Buy

DigitalX has ramped up its Bitcoin holdings with the acquisition of 74.7 BTC, worth approximately US$8.8 million at the time of purchase, it said on Tuesday.

The move increases Australia’s sole ASX-listed crypto fund manager’s total Bitcoin position to 499.8 BTC, valued at roughly $91.3 million.

That includes 306.8 BTC, which is held directly, while 193 BTC is held via the company’s stake in the DigitalX Bitcoin ETF.

The purchase, executed at an average price of $117,293 per Bitcoin, pushes DigitalX’s total treasury beyond $100 million. It follows an acquisition of 57.5 BTC earlier this month and marks a continuation of the company’s strategy to consolidate Bitcoin as the core of its treasury portfolio.

The move aligns DigitalX with a growing cohort of companies embracing Bitcoin as a strategic asset. The trend was popularized by MicroStrategy, now Strategy, which began aggressively accumulating Bitcoin in 2020 via debt offerings.

Under the leadership of Michael Saylor, Strategy now holds over 597,000 Bitcoin, making it the largest corporate holder of the crypto.

More recently, Japanese firm Metaplanet has gained attention for its Bitcoin-heavy pivot, earning the moniker “Asia’s MicroStrategy” as it builds out a Bitcoin treasury through equity raises and planned debt issuance.

DigitalX is following a similar path, having raised $13.5 million earlier this month to fund further Bitcoin purchases and establish a strategic advisory board featuring Animoca Brands’ Yat Siu and Web3 advisor Hervé Larren.

The company allocated $12.8 million of the raise toward Bitcoin accumulation, with the remaining funds earmarked for operations and working capital.

Leigh Travers, non-executive chairman of DigitalX and director of Capital Markets at Animoca Brands, told Decrypt that the company had plans for further purchases this year. “Our strategy is simple: acquire and hold Bitcoin as our primary treasury reserve asset. We’ll continue accumulating this year and beyond,” he said.

However, it has “no plans whatsoever” to invest in other cryptocurrencies. “Bitcoin is the king,” Travers said. 

“Ethereum and other altcoins, which function as digital oil or a utility token, are competing with many other competitors. We want [DigitalX] to be around in 10 years with a growth pathway with high certainty,” he added.

The Bitcoin-buying bandwagon isn’t limited to crypto-native firms. 

A number of publicly traded companies from more unexpected sectors are also jumping in. Hong Kong-based DDC Enterprise, which owns food brands such as Nona Lim and Yai’s Thai, recently raised $528 million to establish its own Bitcoin treasury.

Solar Bank, a Canadian renewable energy firm, has also declared its intention to begin accumulating Bitcoin. The move has drawn some criticism given Bitcoin’s energy demands, though defenders argue that an increasing share of Bitcoin mining is powered by renewables.

Even Metaplanet originally ran budget and “love” hotels—short-stay accommodation often rented by the hour—before pivoting to crypto.