DigitalX Share Price Flat as It Buys the Dip (ASX:DCC)
At time of writing, the DigitalX Ltd [ASX:DCC] share price is flat, trading at 6 cents.
At one point going as high as 13 cents in late November, you can see the chart for DCC shares below:
We take a quick look at DCC’s latest announcement, as it buys the crytpo dip.
Highlights from today’s DCC announcement
Here they are:
‘● DigitalX Board resolves to double the Company’s original investment of A$750,000 into the DigitalX Digital Asset Fund.
‘● Original seed investment of A$750,000 now worth over ~A$2.5 million at current market prices1 .
‘● Short-term drawdown represents a strategic opportunity to utilise funds from recent capital raise to accelerate the growth of the Digital Asset Fund.
‘● Strong capital position combined with very low cash market returns sees DigitalX seeking higher returns on investment.’
Outlook for the DCC share price
DigitalX is positioned in two different worlds.
While listed on a traditional stock exchange, DCC shares give investors exposure to movements in digital assets like crypto.
DCC has always intrigued me as they don’t just do crypto — they also do a gold product.
I actually had a chance to speak to Leigh Travers, who is Executive Director of the company, for the Money Morning Podcast.
One of the points Leigh made was that DigitalX is into digital assets for the long haul.
With Bitcoin [BTC] selling off sharply along with a broad range of other cryptos, today’s move by DCC underlines that long haul mentality that Leigh spoke of.
Doubling down and buying the dip, in essence.
Just as you can HODL crypto you can HODL DCC shares, if you have the mettle.
I’m still bullish on crypto in the long term, so you can read into that and conclude I’m bullish on DCC as well.
You can catch my full interview with Leigh Traver’s right here; it’s a great listen.
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here