Only ASX listed blockchain company Digital X secures funding.. Share Price Soars

Digital X up 29% today in early trade

Shares of Digital X [ASX:DCC] have risen this morning, following the announcement of a possible $4.35M funding deal.

What does this mean for Digital X?

Digital X has been under pressure due to low levels of cash. Despite having just launched the world’s first blockchain based remittance mobile phone app, worryingly low cash levels were clearly keeping investors away.

Should this deal complete, the company will finally be able to trade based on their technology instead of their balance sheet.

The timing could be ideal.

What now for Digital X?

Digital X has had a torrid time since its original listing. From poor decisions, bad timing and even a previous manager under investigation for wire fraud in a previous business.

You can see why the share price is around 2.5c.

However with new management in place, potential new funding around the corner and an upturn in general awareness of the crypto currency industry, this could signal the start of better things to come.

The funding party, Blockchain Global, will end up with 40% of the company should the due diligence period complete with no problems.

This is still a very high-risk proposition, even if the funding deal does complete. But it is definitely one worth watching for the small-cap investors looking to invest into bitcoin and blockchain without actually having to touch a crypto currency

Ryan Dinse,
Money Morning

Ryan Dinse is an Editor at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

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