DigitalBTC, a bitcoin company from Australia, has announced its first quarterly earnings report since the firm’s reverse takeover and re-listing on the Australian Securities Exchange (ASX).
In the announcement, the company reported positive cash flow from bitcoin mining activities and bitcoin liquidity propositions, signifying that the investments in its mining operations were recouped. Additionally, DigitalBTC is willing to enter the consumer space and it plans to use revenue generated by its mining business for further expansion.
DigitalBTC is not only the first bitcoin company that is listed on the ASX, it is also the first company to present publicly its quarterly earnings.
The main revenue source for DigitalBTC is bitcoin mining. The company bought several tranches of BitFury miners, aiming to become one of the biggest mining operations in the world.
Furthermore, the firm also developed a strategic partnership with CloudHashing.com.
“Our purchase of Bitfury Group equipment has proved to be a wise decision, with the company now having achieved complete payback on our original US$4m equipment purchase, including all capital and operating costs incurred to date,” added DigitalBTC Executive Chairman Zhenya Tsvetsenko.
The company mentions that it has mined around 8,600 bitcoins so fa, adding, as of 30th June, it also held an estimated 3,600 bitcoins awaiting liquidation. Nevertheless, in its ASX filing the company reported different numbers, saying it sold approximately 4,000 bitcoins.
However, the company explained the difference between the figures saying it happened due to the accounting rules:
“Due to the nature of accounting standards, bitcoins generated but still held prior to liquidation or use in Liquidity Desk operations will not be reported as cash flows relating to operation activities.”
Furthermore, DigitalBTC has also rebranded its trading desk, now it is called the Liquidity Desk, mentioning that it still generates positive returns. In addition, the company has entered new partnerships and gained volume in June.
Even though, it says that R&D is working on a number of innovative consumer products, no clear details were provided.
“The bitcoin system continues to go from strength to strength, with significant new investments and major merchants coming on board,” said Tsvetnenko. “In the last week, the biggest retailer yet to accept bitcoin, Dell, began accepting payments for purchases via the Dell site.”
Zhenya Tsvetnenko specified that bitcoin is rapidly moving toward mainstream usage, pointing out that DigitalBTC plans to play a significant role in realising bitcoin’s full potential.
Konstantin has always been at the forefront of the global virtual currency scene since first discovering cryptocurrencies the same year that Satoshi Nakomoto created bitcoin in 2009. Konstantin is the owner of a number of small businesses in trucking and mobile development, and co-founded CoinSpeaker in 2014. He graduated from Belarusian State University in 2009 with a degree in Mathematics and Mechanics. You can contact Konstantin via [email protected]
