How To Rate Crypto Exchange Play Digatrade Financial Corp (OTCMKTS:DIGAF)

How To Rate Crypto Exchange Play Digatrade Financial Corp (OTCMKTS:DIGAF)

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Digatrade Financial Corp (OTCMKTS:DIGAF) is a penny player attached to the cryptocurrency narrative. This is an exchange play and may be something worth checking out mainly because it hasn’t really gone into orbit just yet. In fact, DIGAF has been surprisingly quiet given the fervor in the sector. We actually like that because it leaves open the possibility that core equity stakeholders are still accumulating exposure and don’t want to send the share price higher.

In short, for those who have been trying to find a way to gain some exposure to a cryto-currency exchange (as money is starting to flood into crypto trading) this could be an interesting place to look. DIGAF appears to have an exchange up and running. They don’t seem to be doing much volume yet based on exchange trading data, but DIGAF is carrying a market cap of just $12.10M. That’s very inviting in a world where everything associated with the crypto space has rocketed to nosebleed levels with or without a viable business behind the ticker.

Digatrade Financial Corp (OTCMKTS:DIGAF) bills itself as a global Digital Asset Exchange Platform, blockchain development, and distributed ledger financial technology services company. The proprietary trading and matching engine manages high volume, high throughput, and low latency trading and was modeled on the same technology recently leveraged by the world’s largest Investment Banks.

DIGAF offers 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 and it strives to be your digital asset connection by making the experience as effortless as possible. It is Digatrade mission to promote a healthy eco-system by providing value-added digital exchange services to the public. Digatrade is also lowering the barriers to digital assets and blockchain development adoption by increasing ways for consumers to acquire and access digital assets.

DIGAF operates as a digital asset exchange platform in Canada. The company offers blockchain development services and distributed ledger technology. It manages a trading and matching engine that offers multi-currency settlement, and real time FX pricing and risk management. The company was formerly known as Bit-X Financial Corporation and changed its name to Digatrade Financial Corp. in October 2015. Digatrade Financial Corp. was founded in 2000 and is based in Vancouver, Canada.

According to company materials, “DIGATRADE is a global digital asset exchange and blockchain development services company located in Vancouver, British Columbia, Canada. The Company is owned and operated 100% by Digatrade Financial Corp which is publically listed on the OTC.QB under the trading symbol DIGAF. DIGAF is a reporting issuer in the Province of British Columbia, Canada with the British Columbia Securities Commission “BCSC” and in the United States with the Securities Exchange Commission “SEC.” Digatrade operates as a registered Money Service Business “MSB” in Canada with FINTAC under Registration Number: M15954395.”

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As noted above, DIGAF appears to have a working crypto exchange up and running right now, but the company has not been overly “hypey” with its press communications, which is potentially an encouraging sign. The fervor in the space continues unabated at this point, with most associated equity plays seeing market cap jumps into the hundreds of millions in recent weeks.

The chart shows more than 330% tacked on to share pricing for the name in the past month, a rally that has pushed up against longer standing distributive pressure in the stock. The situation may be worth watching. DIGAF has a history of dramatic rallies. Furthermore, the name has witnessed a pop in interest, as transaction volume levels have recently pushed greater than 620% above its longer run average levels.

It pays to take note of this fact given DIGAF’s  relatively small trading float of barely over 16M shares. One is wise to respect the dynamic this may create — a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.

Now commanding a market cap of $12.10M, DIGAF has about $85K in cash on the books, which is balanced by roughly $364K in total current liabilities. The company is pre-revenue at this point, which is probably the most important hole in the story. We will update the story again soon as developments transpire. For continuing coverage on shares of $DIGAF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!

Disclosure: we hold no position in $DIGAF, either long or short, and we have not been compensated for this article.

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