The Digitalx Ltd (ASX: DCC) share price is on the rise today, up 5.5% in late morning trade. At the time of writing, the Digitalx share price is trading for 9.5 cents, up 1.06%.
This comes after the blockchain focused technology and investment company reported commitments for its capital raising.
What did DigitalX report about the new capital raising?
DigitalX shares are pushing higher after the company reported it has secured commitments for $8.8 million to fund its growth plans. The capital was committed by US institutional investors not yet invested in DigitalX.
The placement was at a share price of 9 cents, slightly below the current 10 cents per share. DigitalX said it will also issue investors warrants, exercisable at an exercise price of 10 cents.
Specifically, the first ASX-listed Bitcoin-related company said it plans to use capital raising to grow its funds under management. Additionally, it also aims to aid in developing and implementing its Drawbridge RegTech product. Drawbridge, according to DigitalX, “supports listed companies in better managing their compliance and corporate governance policies”.
Comments from the director
On the capital raise, Leigh Travers, executive director of DigitalX said:
With tailwinds in the Bitcoin and digital asset market and the potential growth opportunity for the funds management division, the company believes it is an appropriate time to raise additional funds to accelerate the business…
We believe that these additional funds will allow us to expedite a number of initiatives identified in our recent strategic review across the digital asset funds management business as well as for our RegTech business led by Drawbridge.
DigitalX share price snapshot
Indeed, investors who bought shares in DigitalX a year ago today will be sitting on intraday gains of 390% at the time of writing. By comparison, the All Ordinaries Index (ASX: XAO) is up 9% in that same time.
Year-to-date the DigitalX share price is down 2%.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.