Digatrade Financial Corp (OTCMKTS:DIGAF) Finance Deal Underlines Potential For Upside

Over the last few weeks, the cannabis sector has taken the spotlight when it comes to triple digit returns. Pretty much any stock on the board with a link to the recreational legalization ballot has gained to the tune of hundreds, if not thousands, of percentage points, and while the sector is correcting as we speak on profit taking, it looks like it's far from done just yet.These sorts of gains aren’t limited to cannabis, however.The cryptocurrency space, especially as it relates to bitcoin, has spent that last five years or so maturing into its current phase, and a number of companies have emerged as sector leaders. Unusually, however, there are limited options when it comes to picking up a publicly traded allocation.One that does offer this sort of exposure, and that has picked up large gains since the October close, is Digatrade Financial Corp (OTCMKTS:DIGAF).Those with an ear to to the ground in digital currency might already be aware of this one. The company used to be called BitX, a name that has carved out a pretty decent name for itself in the space over the past three years or so as a wallet and exchange service. After rebranding, it now serves as a bitcoin and other cryptocurrency trading platform, allowing clients to trade both fiat and crypto across the platform. It's similar in concept to a forex platform like MT4 (although the platform is proprietary, so a branded platform like FXCM's Trading Station might be a more apt comparison).This sort of trading is pretty attractive, since it offers what amounts to an anonymous alternative to the current currency trading environment, but to date, the options have been limited. Not limited by options, as such, there are a few platforms out there that offer this sort of concept, but limited by reliability and security. It's tough to get reliable feeds without an institutional partner, and many of the current options are China based, which adds an element of geographical uncertainty to the picture.Digatrade is trying to overcome these issues. A Hong Kong firm has developed the platform, but (and this includes the Digatrade client base) it has a customer base of more than 1.1 million and has done over $100 million in transactions to date. That's about as reputable as it comes in this space, and that's what Digatrade is banking on as boosting its base going forward.So why the recent gains?The company just announced a finance deal that will see it pick up $4 million over the next twenty-four months, in return for shares issued at intervals throughout. Often, this sort of arrangement can be tough on shareholders, as it generally translates to some pretty heavy dilution across the period in question. The British Columbia Securities Commission (BCSC) has gone some way towards making this an attractive arrangement for those with an early exposure, however, based on a rule that limit the discount to market for the shares to no more than 19.9% of the average closing price of the stock during a 10-day valuation period. 20% discount isn’t great, but it's far from debilitating, and it's 10-day trailing, which sweetens the deal a little.Digatrade also just announced a partnership with NetCents Technology Inc (CSE:NC), a payment service provider, which will enable global card based transactions including, to include Visa, Mastercard, Applepay and Paypal. Those familiar with the currency trading space will understand just how important this sort of arrangement can be when it comes to smooth (and protected) deposit and withdrawal systems – something that often dogs newer players in the space, and in turn, makes said players less attractive to prospective clients.So what about future growth?It all comes down to client acquisition from here on out. Digatrade makes its money from transactions, and transaction volume correlates to client volume. We know the digital currency landscape is growing, but the company is going to come up against come stiff competition for user deposits, and it's going to have to put any expansionary capital to good use if said deposits are going to flow into its system, as opposed to others.There's potential here, but smart marketing is key.We will be updating our subscribers as soon as we know more. For the latest updates on DIGAF, sign up below!Disclosure: We have no position in DIGAF and have not been compensated for this article.