Small Cap ASX Tech Stocks in Focus

Team Veye | 18-Dec-2024

With blockchain-focused technology drawing attention of investors, two stocks of potential growth companies could be considered for investment 

NoviqTech Limited (ASX: NVQ)

NoviqTech Limited (ASX: NVQ) has recently made significant strides in its commitment to blockchain technology, particularly through its expanded investments in the Hedera ecosystem. On December 13, 2024, the company announced an additional AUD 100,000 investment in HBAR tokens, bringing its total investment in 2024 to AUD 250,000. With this, NoviqTech now holds over 1.8 million HBAR tokens, valued at approximately AUD 834,043. This ongoing investment highlights the company's dedication to leveraging blockchain for scalable, sustainable solutions, particularly in ESG compliance, supply chain traceability, and reporting, aligning with its vision to lead in the distributed ledger technology (DLT) space.

The company’s growing alliance with the Hedera Foundation is integral to its strategy of fostering transparency and accountability through blockchain applications. Hedera’s advanced Hashgraph consensus mechanism offers a high-performance, energy-efficient platform, and NoviqTech’s continued investment reflects its confidence in Hedera’s potential to revolutionize industries with secure and decentralized solutions. The strengthened partnership with Hedera underscores their shared goal of building impactful solutions for a decentralized digital future.

NoviqTech has expanded its partnership with Global Resource Recovery (NT) (GRR), transitioning from a client relationship to a Strategic Alliance. This collaboration focuses on promoting and marketing NoviqTech’s Carbon Central platform, which uses blockchain technology to enhance transparency in recycling processes within the Australian oil and gas sector. As part of the alliance, GRR will help drive the adoption of Carbon Central among top-tier clients, while NoviqTech continues to develop and maintain the platform. This partnership aligns with the growing demand for digital solutions in the oil and gas sector, where transparency in emissions reporting and operational accountability is becoming increasingly important. The global oil and gas sector presents a substantial market opportunity, with projections indicating a market worth USD 74.13 billion by 2032, growing at a CAGR of 16.3%.

DigitalX Limited (ASX: DCC)

DigitalX Limited (ASX: DCC) reported strong performance for November 2024, with significant gains in its digital asset funds. The DigitalX Bitcoin Fund (DXBF) rose by 33.8% in November, bringing its year-to-date growth to 133%. The DigitalX Fund (DXF) also saw impressive gains, increasing by 31.9% during the month and 81.1% year-to-date. Digital assets outperformed the All Ordinaries Index, which only grew 3.3%, and AUD gold, which fell by 2.9%. Bitcoin prices surged to an all-time high of US$99,600 before stabilizing at around US$95,500, positioning Bitcoin as the 7th largest asset globally.

Additionally, DigitalX made a strategic move by subscribing to 1.28 million units in its own DigitalX Bitcoin ETF (ASX: BTXX), valued at A$42.9 million. This subscription was funded through the Bitcoin holdings of the DigitalX Bitcoin Fund, which now holds units in the ETF instead of direct Bitcoin. DigitalX, which owns 68.4% of the Bitcoin Fund, continues to strengthen its position in the rapidly growing digital asset market.

Looking ahead, DigitalX remains committed to expanding its footprint in the digital asset space. With over $50 million in digital assets, the company is well-positioned to benefit from the increasing value of Bitcoin. Its business strategy includes growing its staking activities and reducing costs, ensuring its profitability and sustainability. DigitalX continues to hold Bitcoin on its balance sheet and is exploring new opportunities, especially as the regulatory landscape for digital assets evolves. The company’s innovative approach and strong balance sheet position it well to take advantage of future growth in the digital asset sector.

Source: Company’s Report

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