Australian investment company Macro Energy has announced plans to enter the digital currency space through the acquisition of Digital CC and its subsidiary digitalBTC. The company plans to raise A$9.1m and list digitalBTC on the Australian Stock Exchange (ASX).
Macro Energy describes digitalBTC as an "innovative digital currency company" engaged in bitcoin mining and trading. In addition digitalBTC is developing retail consumer products for bitcoin and other digital currencies.
The company points out that digitalBTC already has established mining revenues and ties with key hardware partners. It also has a trading desk backed by management experienced in physical commodities trading and is headed by Zhenya Tsvetnenko, a wealthy Perth-based tech entrepreneur.
Macro Energy said:
"Following completion of the transaction, digitalBTC will be the first ASX-listed company offering exposure to the bitcoin system and will gain advantage from the robust corporate transparency and compliance required by the ASX listing."
The capital raising appears to have been successful and the company says it already has "firm commitments" from investors. The money raised will go towards expanding bitcoin mining and trading activities, as well as development of retail-oriented mobile applications.
Tsvetnenko has a background in tech and one of his earlier projects was a micro-transaction platform integrated with Google ads and mobile apps. He believes he can change the way many users approach payments and transfers.
“As the bitcoin system matures beyond its initial niche and begins to realise its true disruptive potential, sophisticated service firms will be increasingly required to facilitate the system. We believe that sophisticated intermediaries such as digitalBTC can derive significant profit in supporting this emerging growth phase of bitcoin, as it takes its place as a true worldwide currency."
Tsvetnenko said he is pleased with the Macro Energy deal, as it will give digitalBTC the platform and capital to take its operation to the next level. Since the company will be listed on the ASX, public market investors will have an opportunity to participate, he points out.
In addition to bitcoin, digitalBTC will also look at other emerging digital currencies, as many of them enjoy similar growth rates to bitcoin and they could complement digitalBTC's digital currency strategy.
Macro Energy managing director Brett Lawrence said the company was on the lookout for high quality investments and digitalBTC ticked all the right boxes. He said digitalBTC offers Macro shareholders "significant potential upside" in a rapidly evolving sector.
"The strong support shown by new investors, having received firm commitments exceeding $9.1m under the capital raising, underlines investor confidence in the future of the bitcoin system," Lawrence said.
Australia is relatively liberal when it comes to digital currencies, the Reserve Bank of Australia does not believe that it has to step in yet, and the fact that a bitcoin company can trade on the ASX and raise plenty of funding from serious investors is an encouraging sign.