In its first deal since closing the $13.2 million private placement brokered by H.C. Wainwright & Co., DigiCrypts Blockchain Solutions Inc. (CNSX:DIGI) (OTCMKTS:DBKSF)—operating as DigiMax Global Solutions—has made both a transformative and hyper value-oriented addition—descriptors that are generally not mutually exclusive. For just US$125,000—including covering both past and upcoming filing and legal fees—DigiMax will avoid the lengthy registration process and form a long/short crypto Fund in the Cayman Island using its proprietary CryptoDivine application. CEO Chris Carl returns to the program to discuss the implications for investors.
In joining such other crypto-focused funds such as Galaxy Digital Capital Management, Pantera Bitcoin Fund and Polychain Capital, DigiMax Global hopes to emulate the explosive growth its soon-to-be peers are experiencing. For example, Galaxy Digital has gone from US$357.2 million assets under management (AUM) on December 31, 2019 to $1.275 billion on March 31, 2021. That’s a rise of 257% in AUM in just fifteen months.
Granted, some firms offer ancillary services and advisory in addition to their trading divisions to generate returns, but the meteoric rise in crypto prices has been a magnet for new capital flooding into the system and overall asset growth. DigiMax is now staking its claim to this fast-growing investment segment.
Galaxy Digital Holdings Meteoric Rise in AUM During The Crypto Boom
|Date||AUM (in millions USD)||BTC Price (USD)|
While the rise in crypto prices has powered the industry, it’s important to note DigiMax’s soon-to-be fund will be a systematic long/short active investment into a basket of cryptocurrencies, meaning it can capture returns on both long and short strategies. As long as crypto experiences volatility—which is practically guaranteed for a variety of reasons—the fund can capture returns long-only funds cannot, assuming CryptoDivine works as well as purported.
TDR also notes that existing CryptoDivine retail subscribers will have similar signaling and timing tools as the fund managers, which is practically unheard of in the investment management industry. We think this could be a very attractive selling feature for retail subscribers going forward—especially once the fund builds a track record of success. Equal institutional/retail signal access simply isn’t the norm—at least not for a substantial cost.
Click on the embedded link for more of our newest interview with DigiMax Global Solutions CEO Chris Carl, in his own words.