Tag: DigitalX

DigitalX reports strong balance sheet as revenue soared 305% in second half of 2021

DigitalX reports strong balance sheet as revenue soared 305% in second half of 2021

March 1, 2022 – DigitalX has just released solid half-year financial results, with revenue quadrupling as funds under management rose 73 per cent and a key acquisition started to pay dividends.

DigitalX (ASX:DCC) says it made $1.1 million in revenue in the six months to December 31, 305.5 per cent more than it did during the same period in 2020, with almost half of that coming from its funds under management division.

The company’s two digital asset funds brought in $520,982 during the half year, as funds under management grew to $33.59 million thanks to both rising prices and $3.57 million in inflows.

Overall DigitalX trimmed its loss for the period by 16.5 per cent to $847,362.

The company finished the year with $7.4 million cash at bank, plus another $60.3 million in digital assets, including $39.9 million in Bitcoin.

“Despite volatility in the digital asset markets in December 2021, the balance sheet remains strong heading into the second half of FY2022,” the company said.

Its two core products – Sell My Shares and Drawbridge, its regtech compliance software – are both well positioned as financial securities markets such as the ASX move to distributed ledger technology, DigitalX said.

‘Very pleasing’ results

“The half-yearly result is very pleasing from the company’s perspective,” said Lisa Wade, the company’s new chief executive.

“Revenues across the funds management and product development divisions were relatively even; we expect to be able to reduce our one-off costs in 2022; and importantly we have now established the foundations of our business moving forward.”

“I am particularly happy with our inaugural sustainability report and fresh ESG focus and am looking forward to sustainability being an ongoing focus – in terms of not only the delivery of shareholder returns (but) also on the impact of the value we create.”

Wade joined DigitalX just recently, the company having poached her from NAB shortly before Christmas.

This article was developed in collaboration with DigitalX at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

DIGITALX DECEMBER BITCOIN AND DIGITAL ASSET EXPOSURE

DECEMBER BITCOIN AND DIGITAL ASSET EXPOSURE

DigitalX Limited (ASX:DCC, OTCQB: DGGXF) (the Company) provides the following monthly update to shareholders on its funds under management and value of Bitcoin and digital asset holdings as at the end of December 2022.

The DigitalX Bitcoin Fund declined 0.3% for the month and the DigitalX Fund fell 3.7%, while the S&P Cryptocurrency Top 10 Equal Weight Index (“Index”) declined 14.0%. Over the quarter, the DigitalX Bitcoin Fund declined 18.8% and the DigitalX Fund fell 22.2%, while the Index declined 26.5%.

The performance of both DigitalX funds reflected the subdued market action in December in the wake of the collapse of the FTX exchange. The active DigitalX Fund strategy outperformed the Index this month and quarter due to our relatively conservative portfolio composition and higher allocations to Bitcoin and Ethereum than the Index.

DigitalX Chief Executive Officer, Lisa Wade said:

“Although a negative month and tough quarter for digital assets, it is pleasing that our funds outperformed the Index with our focus on quality names inside the Top 20 crypto universe.

We believe 2023 will see further volatility across financial markets and expect the recent correlation to digital asset markets to continue. In saying this, we believe that the underperformance gap of digital asset markets to broader equity markets will close over the medium term (this gap is currently 55%) as we see further movement towards industry regulation and transition from traditional finance to decentralised finance. In the short term, digital asset markets must navigate the continued fallout from the collapse of FTX, with the possibility of further Chapter 11 bankruptcies dominating news flow in January.

We continue to position ourselves as a safe pair of hands in digital asset management by managing counter-party risk, utilising cold storage methods and producing our significant proprietary research aligned to our long term thematic views for the digital assets sector. Our top investment themes continue to include:

1. Real world asset tokenisation;
2. Decentralised data (including ZK Rollups – a cryptographic proof to validate Ethereum transactions faster, cheaper and more securely);
3. Digital identity opportunities; and
4. Web3.0 infrastructure across decentralised application networks.

We believe the structural shift of financial infrastructure into Web3.0 financial guardrails is well underway and expect institutional adoption to continue to accelerate in 2023.

Finally, in December ~A$800,000 of our Bitcoin holdings held in Treasury (~15%) was converted into cash as part of our broader strategic initiative to more actively manage treasury assets and optimise investment opportunities. The board and management are focused on proactively generating shareholder value and making sure our balance sheet is generating value.”

For information on the DigitalX digital asset funds please visit https://digitalx.fund/

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Disclaimer
All transaction are carrying out by SiLLC, a private portfolio management assembly. This document is not an offer of securities for sale or investment advisory services. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed. Certain statements and forecasted data are based on current expectations, current market and economic conditions, estimates, projections, opinions and beliefs of SiLLC and/or its members. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in such forward-looking statements or in any of the case studies or forecasts. All references to SiLLC’s advisory activities relates to SiLLC Assembly International.

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