Former Australian Bitcoin Mining Company Reports $1.23m Loss

By May 4, 2016Bitcoin Business

People who have been following the Bitcoin scene for quite some time now will remember a company called DigitalBTC. This enterprise is now listed on the ASX as FinTech firm Digital X, and they have reported a US$1.2m loss after pivoting from their Bitcoin mining business model. Digital X Revenue Loss after Bitcoin Mining Rebrand

Finding a proper business model in the Bitcoin ecosystem is not an easy task these days, even though there are still a lot of ways to make money. Bitcoin mining used to be a very profitable business at one time, but the cost of hardware and maintenance can easily outweigh the profits. Especially if that company runs their mining pool, and has to compete with all of the other miners on the Bitcoin network. Digital X used to a Bitcoin mining company until the company pivoted their business model about six months ago to a FinTech firm. Taking a step back from Bitcoin mining seemed to be the right move at that time, due to earnings falling short of projects, and the globalized focus on FinTech ever since.

However, a rebranding does not come easy for most businesses, and Digital X was no different in that regard. When the company announced their Q1 2016 earnings, the US$5.7m in revenue was the good news, although they still reported US$1.2m in losses. Shutting down Bitcoin mining operations left a bit of a cash void for Digital X, and it will take time to recoup these losses.

But there is more, as the rebranding from DigitalBTC to Digital X also led to the company purchasing US$6.7m on buying bitcoins for their liquidity desk. Combining this with the change in business model, as well as the mounting costs for electricity and hosting capacity back when they were still mining, […]

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