DigitalX (ASX:DCC) share price rockets 13% on quarterly update

The DigitalX (ASX: DCC) share price is rocketing today after the company announced its March quarterly report.
The post DigitalX (ASX:DCC) share price rockets 13% on quarterly update appeared first on The Motley Fool Australia. –

A drawing of a white rocket streaking up, indicating a surging share pirce movement

The DigitalX Ltd (ASX: DCC) share price is storming higher towards the end of market trade. This comes after the blockchain and asset management services company released its March quarterly report for the FY21 year.

The DigitalX share price is swapping hands for 7.8 cents apiece at the time of writing, up 13%.

How did DigitalX perform?

For the quarter ending 31 March 2021, DigitalX delivered strong growth across all key metrics.

Liquid assets for the period increased to $46.4 million, representing a 122% jump from the prior quarter (December 2020). The result came from a strong performance of Bitcoin (CRYPTO: BTC), the DigitalX digital assets funds, and proceeds of a capital raise.

Cash receipts lifted to $265,000 for the 3 months, a 77% improvement when looking at quarter-on-quarter (QoQ) growth. Revenue for the March quarter stood at $713,000, a 232% QoQ jump.

The performance was underpinned by increased fees from the funds under the management division, totalling $31.9 million, rising 237% QoQ.

The company said it was continuing to focus on commercialising its Drawbridge RegTech product, which “supports listed companies in better managing their compliance and corporate governance policies”.

Several engagements with customer leads for the Drawbridge application are beginning to follow through. DigitalX revealed that 4 ASX-listed companies, including itself, have signed on as paid customers for the now-closed early adopter program.

In addition, the company has undertaken sales and marketing strategies to accelerate awareness of Drawbridge.

What did management say?

DigitalX CEO Leigh Travers commented on the company’s outlook:

DigitalX is well capitalised and well-positioned to deliver growth in both of our businesses in 2021. There is a growing focus for improving corporate governance, particularly in light of the ESG priorities from investors, and DigitalX enables this with Drawbridge.

Meanwhile, the digital asset funds management business is starting to gain traction on the back of a growing appreciation of the sector as a legitimate asset class and DigitalX is at the forefront of developments within this market.

About the DigitalX share price

The DigitalX share price has gained close to 200% in the past 12 months but is down just over 15% year-to-date. The company’s shares reached a 52-week high of 13.5 cents in late November before treading lower.

DigitalX commands a market capitalisation of about $57 million, with 736 million shares on issue.

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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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.

The post DigitalX (ASX:DCC) share price rockets 13% on quarterly update appeared first on The Motley Fool Australia.

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