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.