Insights

Here’s why the DigitalX (ASX:DCC) share price is leaping 9% today

What did DigitalX announce?
The post Here’s why the DigitalX (ASX:DCC) share price is leaping 9% today appeared first on The Motley Fool Australia. –

The Digital X Ltd (ASX: DCC) share price is on the move on Friday morning. The blockchain and asset management services company announced its participation to deliver ideas for the growth of digital finance.

At the time of writing, DigitalX shares are fetching for 12.5 cents, up 8.70%. It’s worth noting that its shares are a whisker away from breaking its multi-year high of 15.8 cents reached in mid-November.

What did DigitalX announce?

Investors are fighting to get hold of DigitalX shares following the company’s latest update.

In today’s release, DigitalX advised that it has entered into a partner agreement with the Digital Finance Cooperative Research Centre (Digital Finance CRC).

Established in 2018, the Digital Finance CRC brings together companies to undertake research and commercial activities to exploit the digital finance revolution. The group consists of organisations in the finance industry, the Reserve Bank, as well as academics from numerous Australian universities.

Importantly, this allows DigitalX to collaborate with other leading companies around Australia focused on financial and blockchain technologies. This relates to innovations in digital finance, including asset tokenisation, central bank digital currency and regulatory technology.

On 30 June 2021, the Australian federal government provided $60 million to the Digital Finance CRC for digital finance research.

What does this mean for DigitalX?

Under the agreement, DigitalX will commit up to $2.5 million in cash contributions over its 10-year tenure. Around $100,000 will be handed in the current financial year, with $150,000 following in the next financial year.

The company is already looking into research projects relating to digital organisational models such as Decentralised Autonomous Organisations (DAOs). Developing this tool can provide crucial insights for real-world investment decisions, and risk and investment management strategies.

The work of the Digital Finance CRC is expected to commence in 2022.

DigitalX chief product officer, David Beros commented:

We are excited to have now partnered with the Digital Finance CRC and to join a multi-disciplined group of companies and research universities undertaking important research and commercial development of new ideas for the growth of digital finance.

Importantly for DigitalX, this provides us with the opportunity to be part of a broader group and to work with research teams to investigate and commercialise ideas that are relevant to our business that may be beyond what we could do on our own.

We look forward to bringing our own skill set to the Digital Finance CRC and making a meaningful contribution to Australian financial technology innovation over the next 10 years.

About the DigitalX share price

The DigitalX share price has gained close to 30% in the past 12 months. Its shares reached a 52-week high of 15.8 cents in mid-November, before being sold off in the following weeks.

DigitalX commands a market capitalisation of about $92.81 million, with 742.44 million shares on issue.

The post Here’s why the DigitalX (ASX:DCC) share price is leaping 9% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in DigitalX right now?

Before you consider DigitalX, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DigitalX wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The DigitalX share price has tumbled 30% in 8 days. What’s happening?

Why did the DigitalX (ASX:DCC) share price fall 10% this morning?

DigitalX (ASX:DCC) share price surges 10% on Bitcoin update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!