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DigitalBTC Reports Net Loss On Falling Bitcoin Price

| Published on February 27, 2015 at 14:54 BST
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Australian bitcoin company Digital CC Ltd has published the results for its half-year period up to 31st December 2014, posting a $2.3m net loss after tax.

Notably, the firm was the first bitcoin company to be listed on the Australian Securities Exchange (ASX), trading as digitalBTC.

"The statutory loss recorded for the half has been impacted by necessary accounting adjustments flowing from digital currency price declines," executive chairman Zhenya Tsvetnenko said.

The firm's total revenue was $14.5m. Of this, $9.9m came from its liquidity desk and $9.9m from digitalX Direct sales. The revenue from bitcoin mining was $4.6m.

Net income before interest, taxes, depreciation etc (EBITDA) was $216,934.

Tsvetnenko said:

“Our half year has seen significant growth in our liquidity desk and digitalX Direct operations, as well as investments made in our early mover position in digital currencies."

The company aired plans to continue focusing on the development of its software applications, such as digitalX Mintsy and digitalX Pocket, which will allow consumers "fast and secure transactions regardless of size and geography". 

Mining deals

The announcement comes soon after Digital CC dissolved a relationship with cloud mining platform CloudHashing.

Under the agreement, which was finalised in March, CloudHashing was to run digitalBTC hardware in data centres in Iceland and Texas to mine bitcoins.

On 30th January, the firm filed an announcement with the ASX stating that the companies had agreed to end the supply deal.

Just previously, on 25th January, digitalBTC announced it was expanding its mining capacity and entering a new hosting contract with data centre provider Verne Global.

The company said at the time it was acquiring new bitcoin mining hardware from manufacturer Spondoolies-Tech that would expand its processing capacity by approximately 40% for a "small outlay" of about $700,000.

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