DigitalX posts a $10.4 million profit and the stock is surging

Yoshikazu Tsuno/AFP/Getty Images

DigitalX reported a $US8 million ($10.4 million) half-year profit today — though most of that comes from its cryptocurrency holdings.

Revenue from its core business of managing Initial Coin Offerings on behalf of other companies was $US3.5 million while “net fair gain on digital assets held” was $US8.1 million.

DigitalX “recorded an increase in the value of its digital assets after the price of cryptocurrencies such as Bitcoin rose to record levels in December”, the company said.

Digital X listed $US11 million of those “digital assets” among its current assets:

  • Bitcoin: $US6.9 million
  • Ether: $US366,993
  • POWR: $US1 million
  • FUEL: $US1.5 million
  • Bankera: $1.2 million

It also has $US4 million in good old-fashioned fiat cash.

If you remove the $US8.1 million digital asset gain, DigitalX’s Initial Coin Offering (ICO) and blockchain advisory business is almost breaking even.

(An Initial Coin Offering or ICO is like an initial public offering — but instead of offering shares in a company, an issuer offers digital tokens that can be traded on cryptocurrency platforms or for digital services.)

Excluding the increase in the value of its cryptocurrency assets, the company was left with a small half-year loss of $US46,088 ($60,000).

Peak cryptocurrency value

The December half was a good time to be in cryptocurrency. The value of digital tokens such as bitcoin soared in the period.

Bitcoin came close to $US20,000 on December 16. It finished the year at $US13,860 and is now trading around $US10,000.

It said that as of February 28, these were valued at $16 million.

DigitalX shares bounced 9 per cent to 24.5c.

This article first appeared at Stockhead, Australia’s leading news source for emerging ASX-listed companies. Read the original article here. Follow Stockhead on Facebook or Twitter.

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