- Technology company DigitalX (DCC) says it will use the recent pull back in cryptocurrency prices to double its original bitcoin investment
- The Perth-based bitcoin miner-cum-fund manager operates the Digital Asset Fund, which offers investors exposure to emerging asset classes
- It was launched in April 2018 with an initial seed of $750,000 — an investment that as of May this year was valued at around $2.5 million
- The company says it intends to complete its additional investment of up to $750,000 over the next 40 days
- DigitalX is up 1.67 per cent to 6.1 cents per share
Technology company DigitalX (DCC) says it will use the recent pull back in cryptocurrency prices to double its original bitcoin investment.
The Perth-based bitcoin miner-cum-fund manager operates the Digital Asset Fund, which offers investors exposure to emerging asset classes without the administrative challenges.
It was launched in April 2018 with an initial seed of $750,000 — an investment that as of May this year was valued at around $2.5 million. The last reported Net Asset Value (NAV) of the fund stood at $3.72, compared to $1.00 at the time of launch.
“The DigitalX Digital Asset Fund has driven strong asset price appreciation for DigitalX since inception, as well as for all investors in the Fund,” DigitalX said in a statement this morning.
“The Board has continued to monitor the performance of the Digital Asset Fund and the markets generally, and has resolved that the recent pull back in prices of digital assets generally represents an opportunity for the company to double its investment into the Digital Asset Fund.”
DigitalX says it intends to complete its additional investment of up to $750,000 over the next 40 days.
Bitcoin’s wild ride has seen its value drop by around 50 per cent over the past two weeks. This was due in part to a decision by China to ban financial firms dealing in cryptocurrencies on Tuesday, as well as a series of Tweets by Tesla chief Elon Musk, who backed away from a previous plan to buy, hold and accept payment for his electric cars in bitcoin.
Nevertheless, technology investor Cathie Wood of Ark Invest told Bloomberg on Wednesday that she believed bitcoin still could hit US$500,000 (roughly A$643,397).
However for many investors the volatility is a sign of speculative exuberance. Around US$92 billion (roughly A$118.39 billion) worth of bitcoin was traded on Tuesday this week — 10 times more than the turnover of Apple, despite the fact that the U.S. tech. giant’s market capitalisation of US$2 trillion (roughly A$2.57 trillion) is about three times the value of all bitcoins in existence.
After falling to its lowest point since January, bitcoin recovered marginally to around US$40,000 (roughly A$51,472) on Thursday.
“It’s too early to say if the rebound we’ve seen off the lows in crypto has legs,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne.
“I question if we will get a chance to catch our breath or is there more volatility in store?”
DigitalX is up 1.67 per cent to 6.1 cents per share at 10:58 am AEST.