DigitalX Ltd (DGGXF)

[zbaron1]

Projected Revenue For DigitalX in its Third Quarter.

What follows is a partial revenue forecast based on what could be deduced from the December Quarterly, and the Half Year reports released by DigitalX

The Half Year report tells us DigitalX holds about 2,232,000 AGI coin as of 28 February. On 30 November 2017, the Company announced it acted as the corporate advisor to SingularityNET, a decentralised, open market for Artificial Intelligence (AI) algorithms for the sale of 500 million tokens raising up to US$36 million. DigitalX will receive approximately 0.8% of the 1 billion AGI tokens in the project for marketing and promotional services, plus additional fees for introducing the SingularityNET project to DigitalX’s cryptocurrency investor network across Australia. DigitalX expected to receive net 5M AGI tokens during the current quarter. This indicates that about 2,750,000 AGI Coins were liquidated of the 5,000,000 that should have been received. So it can be reasonably assumed the coins were sold at a dollar or higher in early February, as this is in line with Leigh Travers stated portfolio strategy (Travers Nugget Interview) of selling the majority of coins received as soon as they are liquid.

So if the AGI was sold at $1.00 or higher we are looking at a possible gross of $2,750,000 or more on this engagement alone.

It appears 1,500,000 FUEL Coins (Etherparty) were liquidated. In January - February FUEL was selling for as high as $.43 to $.11. So $645,000.00 to $165,000.00 was probably netted. Conservatively splitting the difference, since we don't know at what point the Coin was liquidated we arrive at $400,000.00 in possible revenue on the sale.

There also appears to have been the liquidation of 250,000 POWR (Power Ledger) Coins. In January - February POWR was selling for as high as $1.90 to $.60. So $475,000.00 to $150,000.00 was probably netted. Conservatively splitting the difference, since we don't know at what point the Coin was liquidated we arrive at $380,000.00 in possible revenue on the sale.

There also appears to have been the liquidation of 24 BTC (Bitcoin) Coins. In January - February BTC was selling for as high as $17,000.00 to $.6200.00 So $408,000.00 to $148,000.00 was probably netted. Conservatively splitting the difference, since we don't know at what point the Coin was liquidated we arrive at $280,000.00 in possible revenue on the sale.

Ethereum has also been significantly accumulated Since December 31st. An additional 1276 Ethereum appeared on the books in the December 31st to February 28th time period. Additionally, on March 6th DigitalX announced in an ASX ANN (PR) that they had already been compensated in the Shivom consultation deal with $500,000 Ethereum. Ethereum was selling for $781.00 on March 6th so $500,000 / 781 = 640 ETH coins netted.

This is an increase of about 1916 ETH since December 31st. 1916 * $600.00 (todays very depressed spot price) = $1,149,000.00

So conservatively netting the following:

AGI $2,750,000.00
FUEL $400,000.00
POWR $380,000.00
BTC $278,000.00
ETH $1,449,000

Total cash revenue on coins if conservatively calculated without Ethereum gains we see possible revenue = $5,257,000.00. USD

With Ethereum gains added at today's spot price of $600.00 we see a total possible revenue of $6,700,000.00 USD

Not calculated here are revenues from AirPocket, market maker activity, or any of the multiple consulting gigs DigitalX is currently engaged in. In the Half Year report Digital X reported that 40% of their revenue was generated via consulting. I am not entirely clear on how to factor this data as it is still nebulous in my mind. However, it is clear there will be significant revenue in the quarter in addition to the possible Coin revenue numbers I have calculated here.

The revenue numbers could, and likely will higher than my calculations, but they will be offset by whatever the value is of the remaining Coin portfolio is on March 31st (the end of the current quarter) as compared with the December 31st Coin portfolio value . We are currently in a depressed market so this will certainly be a drag on the DigitalX overall Coin position. This again will be offset in some way by the revenues I have not tried to calculate due to a lack of data.

Based solely on this information and DigitalX's estimated operating costs as reported in the December 2017 Quarterly report for the upcoming 3rd quarter of something in the range of $573,000. We could be looking at some surging profits for the quarter of something north of $6,000,000 USD. This would be a huge jump as compared with quarter to quarter and year to year results.

IMHO this will put DigitalX in a good position to profitably weather the current market downturn and position the stock for some explosive growth in its price per share in the fourth quarter as the market recovers.

All IMHO. Please do not base any purchase or sell decisions based on my amateur analytics. There are many variables and assumptions that could radically alter the actual outcomes and accuracy of this analysis.

In the words of Fit50, "Happy to HODL!"