I believe Digital X are postponing any market-sensitive announcements until the new financial year. Despite Bitcoin performing remarkably well in recent weeks,a lack of positive news flow from the company is causing many short-term shareholders to panic and hit the sell button. At this time of the year you also need to acknowledge ‘wash sales’ that take place which allow traders to crystallize capital losses. With that said, I think current prices make for a fantastic entry point or top-up level.
This quarter, the company bled $250,000 from its cash reserves as a result of its court case settlement.It will be interesting to see whether the company has been working towards recovering these settlement funds.
We are witnessing a decoupling effect of Digital X from the price performance of Bitcoin. During the frenzy that was the 2017-2018 Bitcoin Bull Run, Digital X were caught up in the ASX crypto craze and closely tracked the price of Bitcoin to a tee. The market is a lot wiser now when it comes to investments in digital assets and Blockchain technology and need worthy reason to invest in Digital X.
I believe we will receive a market-sensitive announcement next month just prior to the release of the Quarterly. If you are holding this stock long-term, it is essential to exercise patience around this time of year and not panic sell if you still maintain the belief that the company has potential to make a big footprint in the Australian Blockchain and digital assets sector.
As a shareholder I feel as though the company have yet to prove to the market that they are capable of generating consistent revenue and profit growth from any of their service offerings or strategic investments. I stand to be corrected once the Quarterly is released next month.
I think the majority of shareholders share the view that it would be the perfect timing to release a progress updates on the following projects and services to the market:
- DX Americas (STO Advisory Services),
- The status of FutureEdge Capital,
- The development of the XBullion Stablecoin,
- How the $3.75M capital raised from the SPP is being utilized? Is there a new strategic investment ready to be unveiled?,
- The status of the VFA License application through the MFSA,
- Plans for an IEO Cryptoassets Project,
- New clients as a result of ICO advisory and Blockchain consulting services,
- Coincast TV Season 2,
- Update regarding the development, creation and issue of the YPB Token as well as the Token Sale Event,
- An update of the company’s digital asset holdings (i.e. Bitcoin, Ethereum, FUEL, POWR, AGI, BitCar, INS, CHP, BKT, OMX) and their current value.
Digital X hold a 73% interest in Digital X Asset Management Fund. The fund has five investment streams – cryptocurrencies, ICO’s, cash holdings, derivatives of cryptocurrency, and managed investment schemes.
Digital X’s Asset Management Fund released a May 2019 update which delivers some impressive results. I have included the first three pages below:
https://media.licdn.com/dms/document/C4E1FAQEwG3ZUHb1Gqw/feedshare-document-pdf-analyzed/0?e=1561528800&v=beta&t=XPKPmYLFD0FhnYTt6mcibevDwqmWAltyHsulLhXmY8g
I think if Digital X were to announce that they were involved in the Bitcoin ETF application in partnership with Decentralised Capital, it could prove to be a turning point for the company.
At the end of the day, Digital X are still relatively in their infancy and continue to grow and adapt to emerging market trends. However, I still believe the market would appreciate a road-map and some insight into what the company’s strategic vision for the next 2-3 years will be. If the company was able to deliver on a business prospectus and the Quarterly reports began demonstrating growing revenue and profit margins, there is no reason why (in a Bullish crypto market)the company wouldn’t be able to exceed the SP highs of yesteryear.
Sadly,it seems as though these concerns and frustrations shared by many shareholders are just echoing throughout the threads of HotCopper and falling on deaf ears over at Digital X. The reality is @Mr.Red raises some very valid arguments and shouldn’t be attacked for his point of view.
If you agree with what I’ve discussed in this post, hit the Like button. In hopes that a member of the Digital X team stumbles upon this post, they may realize that many shareholders share in the same frustrations and concerns about the future of the company. Day traders don’t care about the business model because they are simply in it for the short term and riding off the back of Bitcoin. It’s the long term investors that need answers. I still support the company and believe this is a balanced view with constructive criticism. The bottom line is shareholders want the company to succeed!
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