Highlights

• DigitalX shares rose 12.50% on 7 July 2026 after the company reported its first cashflow positive quarter and provided a business update.

• Sell My Shares recorded unaudited FY26 revenue of approximately $2.89 million and processed more than 1,200 trades in June, marking a record monthly transaction volume.

• Cash and cash-like equivalents exceeded $30 million, while the company retained a strategic Bitcoin treasury of more than 283.5 BTC.

• DigitalX remains on track to commence an on-market share buy-back of up to approximately 120 million shares from 13 July 2026.

• The company is progressing market-neutral Bitcoin treasury strategies and continues evaluating revenue-generating acquisition opportunities.

DigitalX Ltd (ASX:DCC) shares climbed 12.50% to AUD 0.027 during the morning session on 7 July 2026 after the company announced its first cashflow positive quarter alongside updates on its Bitcoin treasury, capital management initiatives and operating businesses. Despite today's advance, the stock remains down 75.45% over the past year.

DigitalX is an Australian digital asset investment manager and the only ASX-listed crypto fund manager. The company manages digital asset investment products, including Australia's first ASX-listed spot Bitcoin ETF (ASX:BTXX), while also operating businesses focused on digital investment services and share trading administration. Alongside its funds management activities, DigitalX maintains a strategic Bitcoin treasury and continues expanding complementary revenue-generating operations through its broader investment strategy.

First Cashflow Positive Quarter Marks Operational Milestone

The latest update highlighted a key milestone for DigitalX, with the company reporting its first cashflow positive quarter during Q4 FY26.

According to the company, the result reflects continued operational progress together with disciplined cost management initiatives implemented over the past year. Management indicated that efforts to simplify the company's cost base while expanding its operating platform contributed to the improvement in cash generation.

The achievement represents an important development in DigitalX's operating performance as the company continues balancing growth initiatives with capital management.

In addition to the cashflow milestone, DigitalX reported that its cash and cash-like equivalents now exceed $30 million. The company noted these funds continue generating yield through investments in U.S. Treasury Bills (USTB) and term deposits, providing additional balance sheet flexibility.

Sell My Shares Delivers Record Revenue and Trading Activity

A major contributor to DigitalX's operating performance during FY26 was its Sell My Shares (SMS) business.

The company reported unaudited FY26 revenue of approximately $2.89 million for the platform, representing the highest annual revenue achieved by the business to date.

Operational activity also reached new highs during June, when Sell My Shares processed more than 1,200 trades, marking a record monthly transaction volume.

DigitalX said the business continues to play an increasingly important role in supporting the company's progress towards sustainable cashflow generation.

Management attributed part of the operational improvement to recent technology enhancements, including the introduction of artificial intelligence-driven customer support tools and fraud detection capabilities. These initiatives have contributed to improved operating efficiency and customer experience.

The company also noted that increased trading activity may have benefited from recent Government changes to Capital Gains Tax announced in May.

Bitcoin Treasury Strategy Continues to Evolve

DigitalX also updated investors on the management of its Bitcoin treasury.

During the period, the company sold 120 Bitcoin at an average price of US$65,281, generating gross proceeds of approximately US$7.83 million.

Following the sale, DigitalX continues to hold more than 283.5 Bitcoin within its treasury, which management considers sufficient to support several Bitcoin trading strategies currently under evaluation.

The company said the sale has increased balance sheet flexibility while maintaining a substantial strategic Bitcoin position.

DigitalX has undertaken an extensive review of Bitcoin yield opportunities and is progressing two market-neutral treasury strategies that aim to generate additional returns while preserving its underlying Bitcoin exposure.

Management explained that these strategies were selected after assessing several risk factors, including exchange exposure, counterparty risk and the objective of avoiding capital gains tax events through the allocation of the underlying Bitcoin holdings.

The company is targeting annualised incremental returns of between 5% and 15%, independent of Bitcoin price movements, while retaining Bitcoin as collateral and maintaining long Bitcoin exposure.

To implement these strategies at scale, DigitalX expects to utilise Bitcoin currently held through its investment in the DigitalX Bitcoin Fund (ASX:BTXX), which remains under evaluation.

The company indicated that further details will be released once the strategies are finalised and, where appropriate, approved by the Board.

Share Buy-Back Remains on Schedule

DigitalX confirmed that its previously announced on-market share buy-back remains on track.

As announced on 26 June 2026, the company intends to repurchase up to 120,362,388 fully paid ordinary shares, representing the maximum amount permitted under the Corporations Act 2001 "10/12 limit."

The buy-back is expected to commence no earlier than 13 July 2026.

According to the company, the initiative forms part of its broader capital management strategy and reflects the Board's view regarding the company's long-term value while maintaining a disciplined approach to capital allocation.

Strategic Investment Program Continues

Alongside its existing operations, DigitalX continues progressing opportunities under its Strategic Investment Acquisition Program.

Management said the program remains focused on identifying complementary businesses capable of generating recurring revenue while strengthening the company's broader operating platform.

The company indicated it is actively assessing opportunities that meet its investment criteria and intends to update shareholders should material developments occur.

This strategy complements DigitalX's ongoing efforts to diversify revenue sources while supporting long-term capital allocation objectives.

Capital Management Supports Future Initiatives

DigitalX's latest update reflects a broader focus on balancing operational performance with disciplined capital management.

The combination of cash reserves exceeding $30 million, a strategic Bitcoin treasury of more than 283.5 BTC and the planned share buy-back provides several avenues for capital deployment.

Management also continues evaluating Bitcoin treasury initiatives designed to generate additional returns without materially changing the company's long-term Bitcoin exposure.

Together with its acquisition program, these initiatives form part of the company's strategy to strengthen operating performance while expanding revenue opportunities over time.

Technology and Digital Asset Management Remain Core Business

DigitalX continues operating across several areas within Australia's digital asset market.

The company manages digital investment products, including Australia's first ASX-listed spot Bitcoin ETF, while providing institutional-grade custody arrangements through independent service providers.

Its client base primarily consists of domestic wholesale investors and family offices seeking exposure to digital assets through regulated investment structures.

In addition, the company's technology-driven businesses, including Sell My Shares, continue contributing to operational diversification beyond digital asset investment management.

Upcoming Focus Areas

Looking ahead, investors are likely to monitor several developments outlined in the latest update.

These include the planned commencement of the on-market share buy-back from 13 July 2026, further progress on the proposed market-neutral Bitcoin treasury strategies and any announcements relating to DigitalX's Strategic Investment Acquisition Program.

The company also indicated that additional information regarding its Bitcoin treasury initiatives will be provided once the proposed strategies receive the necessary approvals.

What This Means for Investors?

DigitalX's latest update combines operational progress with several capital management initiatives. The company reported its first cashflow positive quarter, while Sell My Shares continued to contribute record revenue and transaction activity. Alongside these developments, DigitalX maintained a substantial Bitcoin treasury, outlined plans for market-neutral Bitcoin yield strategies, confirmed progress on its on-market share buy-back and continued evaluating complementary acquisition opportunities. Investors are likely to watch the implementation of these initiatives alongside future updates on treasury strategy, operating performance and capital allocation.