DigitalX (ASX: DCC) has secured subscriptions from existing and new sophisticated investors for a private placement to raise $10.3 million through the issue of 219 million shares priced at $0.047 each.

Prominent digital asset and blockchain enabler Antanas Guoga (commonly known as Tony G) has committed to $4.7m in shares under the placement, subject to a 12-month voluntary escrow period.

DigitalX directors have also subscribed to $611,000 worth of shares and the company plans to raise a further $5.09m with a rights issue to existing shareholders at the same price as the placement.

Strategic advisory role

The board of DigitalX has engaged Mr Guoga in a strategic advisory role to assist the company grow its digital asset staking and validation services.

In consideration for the two-year role, Mr Guoga will receive 25 million DigitalX options exercisable at $0.10 each two years after issuance, subject to shareholder approval.

Mr Guoga is the current chair of Canadian-listed Solana Strategies and has substantial experience in digital asset investment and business growth.

Mt Gox refunds

Following completion of the placement and rights issue, DigitalX will have $18m cash on hand and a digital assets balance sheet totalling $58m.

Another $7m will be generated from 41 bitcoin refunded to the company over the course of the 2025 financial year by the administrators of the failed Mt Gox Exchange.

The Tokyo-based cryptocurrency exchange – once considered the world’s largest – declared bankruptcy in 2014 after up to 850,000 bitcoins were stolen by hackers.

ETF demand

DigitalX has also experienced increasing demand for its spot Bitcoin ETF (ASX: BTXX) since its inception in July.

DigitalX Bitcoin Fund completed an off-market transaction earlier this month subscribing for 1.27 million units in DigitalX Bitcoin ETF, valued at $42.9m.

The subscription was funded by bitcoin held in the portfolio of DigitalX Bitcoin Fund, which will now hold units in DigitalX Bitcoin ETF rather than bitcoin directly.

DigitalX Bitcoin ETF offers retail and wholesale investors direct exposure to bitcoin via a liquid and regulated fund structure without the complexity of a digital wallet and is accessible through major online broker platforms.