Our readers will remember well our coverage on Digatrade Financial Corp. (OTCMKTS:DIGAF). We said that the company had a great business initiative. It was capitalizing on bitcoin and its technology. Thus, we said that the stock was a cheap alternative instead of buying bitcoin directly. Company LogoDid you not see the relationship before the stock and the bitcoin?Have a look at the recent spike of bitcoin. In less than one month, it went from close to $4,000 to touch very recently the level of $5,750. It's more than 40% return in less than a month. Check it out: 1 decade chart for NYXBTNow, let's have a look at the spike of DIGAF's share price. In the same time period, the share price went from $0.10 to touch the $0.20 share price level. That's a 100% share price return. 1 month chart for DIGAFWhy did the company obtain better returns that the bitcoin?Because it released several announcements that seemed to seduce the market; Initial Coin Offering "ICO" Letter of Intent, and its Q2 2017 Financial Statements & MDA.Before we go for the assessment of the recent announcements, if you are just getting to know DIGAF in this article, let us highlight that it is a "global Digital Asset Exchange Platform, blockchain development and advisory services company."DIGAF helps offer an "easy, secure, and affordable platform to buy and sell Bitcoin and other digital assets 24/7 online and provides the instant automated matching of orders between its registered members. It strives to be your digital asset connection by making the experience as effortless as possible."Recent DevelopmentsOn August 28, 2017, the company released its Q2 2017 financial figures. Form your own opinion after having a look at the following image: Q2 2017 Financials of Digatrade Financial Corp OTCMKTS:DIGAFWhat's our take?We believe that the company will need to be funded soon. But, we also think that obtaining new funds will not be an issue. Bitcoin users will be interested in this company, as it is a play on all things related to Bitcoin. We will see later that the company has commenced an initial coin offering, which we believe could boost DIGAF's balance sheet.September was without doubt a good month for the company.On September 7, 2017, the company announced an agreement with ANX International, under which the ethereum coin “ETH” would be included in the Digatrade Exchange Platform. Users will be able to withdraw and deposit functions as well as trade the pair Ether “ETH” to Bitcoin “BTC”. We believe that it is a great news, as the company will be able to increase revenues coming from trading commissions. Additionally, those who intend to own BTC as well as ETH will be choosing DIGAF's platform. The market celebrated the news by pushing up the share price.The press release also included information about Initial Coin Offerings (ICOs), Initial Token Offerings (ITOs), cryptocurrency investment funds, and the cryptocurrency exchanges trading these products. It was said that the company is reviewing with its legal advisors the regulatory framework provided by the Canadian Securities Administrators.The information given by the authorities is quite significant. Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers, noted that the new technology "could generate new capital raising opportunities for businesses." Thus, this means, in our opinion, that DIGAF could obtain funds to grow its business in the near future.On September 28, 2017, more information was released. The company noted the execution of a Letter of Intent for its initial coin offering with a company called No Limits Consulting based in Hong Kong. Additionally, the market got to know that DIGAF is creating a new team of developers and a new Digafund ICO platform & Launch date besides consulting with legal experts for the ICO.Brad Moynes, CEO of Digatrade, was quoted:
“We are very pleased to have executed a digital corporate finance LOI agreement with the ANX group who recently completed the OpenANX https://www.openanx.org/en/token release with total token sales equivalent to US$18.5m.”
This is great news and the market obviously reacted by pushing up the share price again. We need to highlight that this is only a Letter of Intent and the company will need to sign a definitive agreement. If this happens, we can expect the share price to jump even more.ConclusionCurrently trading with a market cap of $8 million, DIGAF is an exciting story among small caps. The reason is that there exists several catalysts that can make the share price jump. Firstly, if the BTC or ETH price increases, the share price of the company increases as well and sometimes increases at a higher pace.Additionally, the company is also signing agreements with other companies to develop new crypto technologies, which pushed up the share price as well.Finally, if the company is able to organize a new ICO, it could put the company on the radar of a lot more investors.To sum up, there is a lot to like here, so be alert on DIGAF!Be sure to check out our coverage on DIGAF.We will be updating our subscribers as soon as we know more. For the latest updates on DIGAF, sign up below!Image courtesy of fdecomite via FlickrDisclosure: We have no position in DIGAF and have not been compensated for this article.
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