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.
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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%.
