DigitalX ramps up A$6.7m Solana bet as ASX investors eye crypto yield potential

DigitalX Limited (ASX:DCC), the only crypto asset manager listed on the Australian Securities Exchange, has strengthened its position in the blockchain staking economy by expanding its holdings in Solana (SOL). On May 8, 2025, the company announced that it had acquired an additional 18,944 Solana tokens—valued at approximately AUD 6.7 million (USD 4.36 million)—bringing its total SOL holdings to 83,150 tokens. The accumulation, funded via its DigitalX Fund (DXF), is part of a strategic shift toward yield generation through blockchain-native revenue models.

Why is DigitalX deepening its investment in Solana?

DigitalX’s move to accumulate more Solana signals a deliberate pivot in its digital asset treasury strategy. Rather than simply holding assets like Bitcoin in passive reserves, the company is targeting protocols that offer annualised staking returns. According to company estimates, staking this enlarged Solana position could generate 7% to 9% in yield, equating to nearly AUD 530,000 annually, based on current market prices. The tokens will be staked via BitGo, a licensed institutional custodian.

Interim CEO Demetrios Christou described the decision as a “high-conviction move” aimed at enhancing recurring income, supporting blockchain ecosystems, and maintaining institutional-grade compliance and custody. The company regards Solana as a blockchain with strong transaction throughput and developer momentum—key metrics that underpin its bullish stance.

How does Solana staking contribute to DigitalX’s revenue model?

Staking is the process of locking cryptocurrencies into a blockchain validator node to support transaction validation in exchange for periodic rewards. In this model, DigitalX earns passive income without relinquishing token ownership, reducing exposure to speculative risk while still engaging in active blockchain participation.

This aligns with the company’s broader strategy of moving closer to breakeven and eventual profitability by unlocking yield from its digital treasury holdings. Through this mechanism, Solana becomes not just an appreciating asset but a revenue-generating tool. The company believes this approach provides a more sustainable financial model compared to pure token speculation.

What makes Solana a ‘high-conviction’ asset?

Solana has emerged as one of the fastest-growing smart contract platforms globally, offering high scalability, low fees, and robust dApp support. It processes thousands of transactions per second, positioning itself as a serious Ethereum alternative for decentralised finance (DeFi), NFTs, and Web3 applications.

DigitalX’s endorsement of Solana is consistent with the broader market trend of diversifying exposure beyond Bitcoin and Ethereum. With increasing developer activity and improving network stability following past outages, Solana is regaining institutional credibility. The blockchain’s growth potential, combined with staking rewards, makes it an attractive asset for yield-seeking investors.

What is the funding source and institutional structure behind the move?

The latest acquisition was funded from proceeds held in the now-closed DigitalX Fund (DXF), which supports the firm’s long-term strategy of compounding capital via digital asset staking. By recycling internal fund capital into high-yield blockchain infrastructure, DigitalX reinforces its reputation as a proactive digital asset manager.

The company’s operational model also benefits from partnerships with trusted third parties, including BitGo for custody and staking execution. Insurance coverage and institutional compliance frameworks are firmly in place, allowing the firm to attract high-net-worth individuals, family offices, and sophisticated wholesale investors across Australia.

How is the stock reacting, and what do investors think?

DigitalX Limited (ASX:DCC) has seen moderate trading volumes and relatively stable pricing in the early weeks of Q2 2025, reflecting a cautious yet constructive investor sentiment. The company has not experienced major price swings recently, which suggests that investors are evaluating the long-term impact of staking-based strategies over short-term crypto volatility.

As of the latest market close, DCC was trading in the AUD 0.065–0.075 range, having consolidated after a modest rally earlier in the year. While not a breakout performer, it has drawn attention from retail crypto investors and institutional funds eyeing blockchain-yield plays with regulated exposure.

Brokerage sentiment around DCC remains neutral-to-positive, with analysts calling the stock a potential “buy on weakness” given its pivot toward revenue-yielding assets. The move toward staking is seen as a logical next step for fund managers seeking predictable income from volatile assets.

There is limited direct FII (Foreign Institutional Investor) or DII (Domestic Institutional Investor) activity disclosure specific to DCC, but investor relations updates indicate rising interest from family offices and boutique digital investment firms. These entities are reportedly exploring long-term allocations in listed digital asset vehicles, particularly those with staking and custody frameworks.

What’s next for DigitalX and Solana?

DigitalX’s strategic bet on Solana represents more than just another crypto investment. It reflects an emerging model of digital asset management where blockchain tokens are not merely speculative instruments but productive treasury assets. If SOL prices appreciate or staking rewards increase, DigitalX stands to benefit from both capital gains and operational yield, strengthening its core financial metrics.

The firm is expected to continue diversifying its staking portfolio. Ethereum and Avalanche are among protocols speculated to be on DigitalX’s watchlist for future staking deployment. Given its success in managing the ASX-listed Bitcoin ETF (ASX:BTXX) and top-rated Bitcoin fund, the company has the operational and reputational infrastructure to scale this approach further.

From an industry perspective, DigitalX’s expansion into yield-generating digital assets may inspire similar moves among listed digital finance firms, particularly those seeking to mitigate crypto volatility with recurring revenue.