Why The DigitalX Share Price Flew 40% Higher Today

Shares of DigitalX Ltd [ASX:DCC], the only bitcoin-related company on the ASX, gained more than 40% in morning trade today. Shares are sitting at 8.5 cents at time of writing.

Why did DigitalX shares rise by this much?

Blockchain Global, which specialises in information technology in the financial services industry, has taken a 40% stake in the company; this transaction was finally completed today.

To add further spice to the announcement, DigitalX stated that around $2 million of the total $4.35 million investment would be held in Bitcoin (BTC). And with BTC hitting a record high today, the market clearly liked this approach.

The new shares are in escrow for 12 months, providing some comfort for new buyers today that Blockchain Global are in it seriously. Furthermore, as part of the agreement, Blockchain Global are set to nominate two directors to the DigitalX board.

What now for DigitalX?

With cryptocurrencies such as bitcoin currently at record highs, DigitalX has a big opportunity in the investment spotlight.

With the addition of Blockchain Global’s expertise, as well as the wave of excitement around cryptocurrencies at the moment, it will be an interesting company to watch for sure.

Regards,

Ryan Dinse,
Money Morning

PS: There is an immense opportunity in cryptocurrencies right now. But, with things moving so fast, you need to start acting soon. Start here.


Ryan Dinse is a contributing 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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