DigitalX (ASX: DCC), a leading global advisor for Initial Coin Offerings (ICO), has surprised market analysts by announcing a blockbuster net profit after tax (NPAT) of US$8 million in the first six months of the financial year, ending December 2017.
The news comes as a welcome surprise, especially to blockchain and cryptocurrency sceptics that doubt the ability of blockchain-led initiatives to generate strong commercial returns, even at this early stage of cryptocurrency commercialisation.
Managing Director, Leigh Travers said revenues were primarily driven by Blockchain and ICO consulting and advisory fees as well as gains in the value of digital assets held by DigitalX.
DigitalX reported an increase in the value of its digital assets, following the strong appreciation in Bitcoin prices over the past year, peaking at a price of US$19,086 (A$24,660) per bitcoin in December 2017.
“For all involved at DigitalX, these results represent the outcome of significant effort over the past 12 months. They reflect the Company’s growing expertise in the Blockchain and digital currency ecosystems,” said Mr Travers.
To generate last year’s financial results, DigitalX provided consulting services to some high profile ICOs including Power Ledger, Bankera and Etherparty. Digital reports that it raised more than A$300 million last year, working on Initial Coin Offerings during the period.
Given its roots in software development and blockchain consulting, DigitalX wants to go a step further in advancing blockchain applications and enabling ICO’s to serve as “compliant capital raising alternatives” for businesses across the world.
According to DigitalX, its partners can use its in-house blockchain technology expertise to deliver innovative products to global markets and offers an array of “high-level consulting services to new Blockchain companies seeking advice in this rapidly evolving industry.”
Just last week, DigitalX was nominated as advisor to Transcendence Technologies, to help incorporate blockchain technology into its current business model and upcoming E-Collate platform, a novel blockchain-powered cloud-based platform allowing clients to upload and manage compliance documentation more securely.