Digital finance company, Diginex had raised capital of $50 million and had undergone a reverse merger. Following these events, the company’s stock can be found under the ticker EQOS on the Nasdaq Exchange. Richard Byworth, the CEO of Diginex said that theirs was the first company listed on the Nasdaq exchange that covers the complete virtual currency ecosystem. He added that this was a major development for the industry. Before this, he said people could only get direct exposure to digital assets like crypto through ETF-like structures. He also mentioned products like the ones offered by Grayscale.
Diginex is the parent company of several different blockchains and crypto-focused entities, such as crypto exchange Equos and their digital asset custody wing known by the name of Digivault. The former had been launched only recently on July 30th of this year. The company is involved in several areas of the blockchain and crypto space and according to Byworth, it provides people with the opportunity to invest in the overall crypto space through the mainstream U.S. stocks market. He said that people can now trade in the entire asset class through this option, something they didn’t have before. Having such an opportunity on the public markets can make a huge difference.
Byworth said that a portfolio focused on cryptocurrency would enjoy the kind of portfolio diversification they can enjoy with this option. If we look back at the 1800s, Americans had gone west looking for gold and they had had to buy picks and shovels for unearthing this precious metal. Hence, it was a safe bet to invest in this pick and shovel companies because they were able to make tremendous profits in this era. This was considered a much better option, instead of having to search for gold because it couldn’t give consistent results. According to Byworth, Diginex is similar to a pick and shovel company.
Not only does the company have an exchange, a multi-venue trading platform, asset management and custody solution, it also has some involvement in digital securities. An indirect approach was taken by Diginex for going public as a listed company. It went through a SPAC i.e. a special-purpose acquisition company, which is referred to as ‘blank-check companies’. These are primarily formed for acquiring or merging with other companies. Diginex merged with a SPAC called 8i Enterprises, which is already traded publicly. As of today’s listing, 8i Enterprises Acquisition Corporation is now known by the name of Diginex.
Hence, the ticker was changed from JFK to EQOS, which means today is its inaugural trading day. This public debut of Diginex has been planned for years. The headlines for the reverse manager had first hit back in July 2019. However, there were a lot of formalities to be completed before it could eventually happen. It wasn’t until February 2020 that the U.S. Securities and Exchange Commission i.e. the SEC, gave the green light to the reverse merger, and also the public listing on Nasdaq. But, it has finally happened and there are lot of expectations from the company.
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