DigitalX Delivers First Quarter of Positive Cash Flow as Revenue Builds

DigitalX (ASX: DCC) has delivered its first cash-flow-positive quarter, reflecting continued operating growth, disciplined cost management, and a stronger contribution from its Sell My Shares (SMS) business.

The digital asset investment manager recorded a cash flow positive fourth quarter for FY26 while maintaining more than $30 million in cash and cash-like equivalents.

SMS generated record unaudited FY26 revenue of approximately $2.89m and processed more than 1,200 trades in June, marking its highest monthly transaction volume.

DigitalX has also retained a strategic Bitcoin treasury of more than 283.5 Bitcoin after selling 120 units at an average price of US$65,281, generating gross proceeds of approximately US$7.83m to increase balance sheet flexibility.

The retained Bitcoin holding remains central to the company’s capital allocation strategy, with the board considering it sufficient to support several trading strategies now under review.

Risk Controls Prioritised

DigitalX has completed an extensive review of Bitcoin yield opportunities and is progressing two market-neutral strategies for potential implementation in the second half of calendar 2026.

The strategies are targeting incremental annualised returns of 5% and 15% independent of Bitcoin price movements, while retaining Bitcoin as collateral and maintaining long Bitcoin exposure.

DigitalX selected the two strategies after assessing them against risk criteria focused on minimising exchange and counterparty risk.

The company is also aiming to avoid capital gains tax events through the allocation of underlying Bitcoin rather than outright disposal.

Implementation at scale would use Bitcoin currently held through DigitalX’s investment in the DigitalX Bitcoin Fund (ASX: BTXX), which remains under evaluation.

Key Company Milestone

Executive chair Leigh Travers called the first cash flow positive quarter an “important milestone” for DigitalX.

“Achieving our first cash flow positive quarter […] reflects the works undertaken over the past year to strengthen the business, simplify our cost base, and grow our operating platform,” Mr Travers said.

“Sell My Shares continues to perform strongly and has become an increasingly important contributor to the company’s financial performance.”

“Combined with our strong balance sheet and strategic Bitcoin treasury, we are well positioned to pursue disciplined capital allocation opportunities, including market-neutral treasury strategies and complimentary strategic investments that we believe can deliver long-term shareholder value.”