The news: Listed cryptocurrency fund manager DigitalX has committed to boosting its Bitcoin holdings from “approximately 500” to 2,100 by the end of 2027.
DigitalX announced the commitment to the ASX before market open on Monday, adding that an enlarged Bitcoin treasury will better place the fund manager and ETF provider to hedge against inflation.
The context: Established in 2014, DigitalX last year was among the first institutions to launch a spot Bitcoin ETF on the ASX. While the fund holds other digital assets like Solana, it says Bitcoin remains the foundation of its treasury.
The 1,600 or so Bitcoin DigitalX said it will acquire would today have a value of $286 million. The company did not clarify if it intended to purchase the Bitcoin, mine it or both.
DigitalX said building up to 2,100 Bitcoin will allow the company to take advantage of new product opportunities as they come up, as it did with the Bitcoin ETF last year. The liquidity of Bitcoin also gives the fund financial flexibility, the company said.
What they said: “Bitcoin stands as the digital equivalent of gold; resilient, scarce and primed for growth amidst increasing global adoption,” said DigitalX chair Leigh Travers.
“Viewing Bitcoin as a treasury asset is akin to backing the lone frontrunner in a one-horse race.
“This strategy not only fortifies our balance sheet but also aligns us with visionary companies spearheading corporate Bitcoin adoption.”
