The Digitalx Ltd (ASX: DCC) share price has continued its strong run on Tuesday and reached yet another record high.
In late morning trade the blockchain technology company's shares are up over 18% to 33.5 cents. This brings its 30 day return to a massive 86%.
Why are its shares higher today?
Although there was no news out of the company today, its shares have a tendency to rise and fall with the Bitcoin price.
Which continued its meteoric rise overnight. At present the Bitcoin price is fetching US$18,986, according to CoinDesk, over 140% higher than it was a month ago.
Investors appear to believe that DigitalX is a great way to gain indirect exposure to cryptocurrencies due to its activities. These include the launch of Bitcoin ATMs, handling ICOs, and acting as a market maker on approved cryptocurrency exchanges.
Should you invest?
While I think that DigitalX is an exciting company, I believe it is a little expensive with a market cap of $135 million.
In my opinion, it deserves a spot on watchlists but not in portfolios just yet. I think investors should wait to see what kind of revenue the company generates from its activities next year before considering whether an investment is justifiable.
In the meantime, fellow fintech shares Change Financial Ltd (ASX: CCA) and Afterpay Touch Group Ltd (ASX: APT) could be worth a look.
