Digitalx Ltd Posts First Cash Flow Positive Quarter on Sell My Shares Record Revenue
DigitalX turns cash flow positive in Q4 FY26 as Sell My Shares hits record revenue
In its Q4 FY26 quarterly update covering the April–June 2026 period, DigitalX Limited (ASX:DCC) recorded its first cash flow positive quarter, reflecting continued operational growth and disciplined cost management. The result was underpinned by record revenue at Sell My Shares, alongside a strong cash and Bitcoin treasury position that the Company noted supports its capital allocation flexibility.
Key figures from the quarterly update include:
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Cash flow positive for Q4 FY26
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Sell My Shares record unaudited FY26 revenue of approximately $2.89 million
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Record June transaction volume of more than 1,200 trades
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Cash and cash-like equivalents exceeding $30 million, generating yield through USTB and term deposits
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Bitcoin treasury of more than 283.5 BTC retained
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On-market buy-back of up to approximately 120 million shares, commencing from 13 July 2026
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Sell My Shares delivers record growth
Sell My Shares continued its strong operational momentum throughout FY26, delivering record unaudited annual revenue of approximately $2.89 million. The business also recorded its highest-ever monthly transaction volume during June, processing more than 1,200 trades.
The Company noted that Sell My Shares has become an increasingly important contributor to DigitalX’s operating performance and its progress toward sustainable cash flow generation.
What’s driving the momentum
Recent enhancements were credited with improving operating efficiency and customer experience. According to the Company, the key contributors were:
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AI-driven customer support
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AI fraud detection capabilities
The Company also noted that increased transaction activity may also have benefited from recent Government changes to Capital Gains Tax (CGT) announced in May.
Bitcoin treasury and market-neutral strategy
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 these transactions, DigitalX retains a treasury of more than 283.5 Bitcoin, described as a substantial strategic holding while increasing balance sheet flexibility.
The Company reported it has completed an extensive review of Bitcoin yield opportunities and is progressing two market-neutral strategies that seek to generate incremental returns while preserving its underlying Bitcoin exposure. These strategies were selected following detailed assessment against the Company’s risk criteria, including minimising “exchange and counterparty risk” while “avoiding capital gains tax events” through the allocation of the underlying Bitcoin.
DigitalX is targeting incremental annualised returns of 5% and 15% independent of movements in the Bitcoin price, while retaining Bitcoin as collateral and maintaining its long Bitcoin exposure. The strategies are under consideration for potential implementation in the second half of calendar 2026, subject to Board approval.
To implement these strategies at scale, the Company noted it would utilise Bitcoin currently held through its investment in the DigitalX Bitcoin Fund (ASX:BTXX), which it continues to evaluate.
| Metric | Detail |
|---|---|
| BTC sold | 120 |
| Average sale price | US$65,281 |
| Gross proceeds | ~US$7.83M |
| Retained treasury | 283.5+ BTC |
| Target incremental annualised returns | 5% and 15% |
Understanding market-neutral Bitcoin strategies
A market-neutral strategy aims to generate returns without taking on directional exposure to the price of the underlying asset. In practical terms, it seeks to earn yield regardless of whether Bitcoin rises or falls in value.
Why does this matter to investors? DigitalX is targeting incremental returns of 5% and 15% on its Bitcoin holdings without selling the asset or triggering capital gains tax events. This approach is designed to preserve the Company’s long Bitcoin exposure while putting the balance sheet to work, using the underlying Bitcoin as collateral rather than liquidating it. The result, if implemented, would be an additional potential income stream layered on top of an existing strategic holding.
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Capital management and the road ahead
As announced on 26 June 2026, DigitalX is undertaking an on-market buy-back of up to 120,362,388 fully paid ordinary shares, representing the maximum permitted under the Corporations Act 2001 “10/12 limit”. The buy-back is expected to commence no earlier than 13 July 2026, and the Company stated it reflects the Board’s confidence in DigitalX’s long-term value and its disciplined approach to capital management.
Alongside the buy-back, DigitalX continues to progress opportunities under its Strategic Investment Acquisition Program, with a focus on complementary, revenue-generating businesses that strengthen the Company’s operating platform and broader capital allocation strategy. Management noted it remains actively engaged in evaluating opportunities and will update shareholders as material developments occur.
The Strategic Investment Acquisition Program was formally announced in February 2026, when DigitalX outlined plans to deploy up to A$30 million into equity stakes in profitable regtech, compliance, and stablecoin-related businesses that generate recurring revenue.
Director commentary
Leigh Travers, Executive Chair
“Achieving our first cash flow positive quarter represents an important milestone for DigitalX and reflects the works undertaken over the past year to strengthen the business, simplify our cost base and grow our operating platform. Sell My Shares continues to perform strongly and has become an increasingly important contributor to the company’s financial performance. Combined with our strong balance sheet and strategic Bitcoin treasury, we are well positioned to pursue disciplined capital allocation opportunities, including market-neutral treasury strategies and complimentary strategic investments that we believe can deliver longterm shareholder value.”
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