6 August 2014
Operational Update
Digital CC Limited (trading as digitalBTC) (ASX: DCC) (the "Company" or "digitalBTC") is pleased to provide an update on the recent business activities for July 2014.
~9,000 bitcoins earned to end-July since inception of the Company earlier in the year
Bitcoins earned can be immediately liquidated to a fiat currency (USD, EUR, AUD etc) or used to generate further returns by providing liquidity to major international exchanges
Bitcoin mining equipment cash cost of US$4 million was repaid in July via Bitcoin mining proceeds. The company continues to generate revenue from bitcoins earned as well as additional cash flow from liquidating the mining hardware
Bitcoin mining equipment is progressively upgraded to new, state of the art equipment to remain at the forefront of technology
Performance of the Bitcoin mining and liquidity desk operations enables the Company to continue the rapid advancement of its retail application development
Summary of Bitcoin Mining OperationsMonth of July 2014 | For the financial year ended 30 June 2014 | |
Bitcoins earned from mining | ~1,800 bitcoins | ~7,200 bitcoins |
Bitcoins sold from mining | ~570 bitcoins | ~4,000 bitcoins |
Cash receipts from bitcoins sold from mining | ~US$365,000 | ~US$2.1 million |
Avg. sales price per bitcoin | US$640 / bitcoin | ~US$525 / bitcoin |
Bitcoins held at month end2 | ~4,900 bitcoins | ~3,600 bitcoins |
Market value of all bitcoins held | ~US$2.8 million3 | ~US$2.3 million4 |
Note 1: Based on price per bitcoin of US$585 on 5 August 2014
Note 2: Includes bitcoins purchased as part of Liquidity Desk operations Note 3: Price per bitcoin of US$580 on 31 July 2014
Note 4: Price per bitcoin of US$640 on 30 June 2014
Summary of Company Working Capital Position On 23 July, we received a full refund of a US$637,000 security deposit relating to the recent US Marshalls service auction of bitcoin.
Closing cash at 31 July was US$5.2 million with a further US$1.1 million VAT refund expected to be received during the quarter.
Market value of all bitcoins held was approximately US$2.8 million.
digitalBTC's Executive Chairman, Mr Zhenya Tsvetnenko, said that he was very pleased with the continued performance and progress made by the Company since relisting.
"In line with the business plan, the Company continues to realise value creation from a strategic set of operations," said Mr Tsvetnenko.
The Bitcoin mining hardware earns bitcoins which can be liquidated into traditional currencies (USD, EUR, AUD etc) or used to create added value in the company's Liquidity Desk Operations. digitalBTC then progressively on-sells the mining hardware and replaces it with the latest state of the art hardware to keep at the forefront of technology.
"This value creation enables the Company to allocate significant time and resources to the development of the digital currency retail consumer applications," said Mr Tsvetnenko.
digitalBTC intends to release the company's preliminary final report (Appendix 4E) to the market in the week beginning 26 August. The preliminary final report will consolidate the digitalBTC business with the previous operations of Macro Energy, as well as detailing underlying performance of the Bitcoin mining operations.
-ENDS-
Zhenya Tsvetnenko Executive Chairman Tel: +61 8 9473 2525
Alex Karis
CEO
Tel: +1 (646) 374-1818 (x) 1010
Shane Murphy, FTI Consulting
Direct: +61 8 9485 8804
Mobile: +61 420 945 291
Email: shane.murphy@fticonsulting.com
Skype: shane.murphy999
Note 1: Price per bitcoin was US$580 on 31 July 2014
Note 2: Expect to receive ~US$1.1 million VAT refund from Iceland tax authority in the current quarter
distributed by |