DigitalBTC Reports $4 Million Revenue in Preliminary Annual Results
DigitalBTC has released the first set of financial results for a publicly listed bitcoin company, reporting US$4m revenue.
DigitalBTC has released the first set of financial results for a publicly traded bitcoin company.
The Australia-based bitcoin mining services provider has emerged as an industry leader, making history when it debuted on the Australian Securities Exchange (ASX) last June. As such, digitalBTC provides a unique window into the bitcoin mining industry, a sector that is only beginning to become more transparent as it attracts investor interest.
In its preliminary final report for the full financial year, the company reported estimated revenue of $4.0m and normalised earnings (EBITDA) of approximately $2.5m. The underlying net profit after tax was $600,000. The results were generated from more than three months of operations.
Despite its suite of services, digitalBTC named bitcoin mining as its business, writing:
While the numbers are encouraging, digitalBTC reported a net loss after tax, caused by a one-off accounting expense related to the reverse takeover of Digital CC Limited (formerly Macro Energy). The takeover was announced last March.
The full document also sheds more light on the company’s revenue, profit and loss.
Sign of success
With the takeover taken out of the equation, the company delivered a strong performance and it expects good results in fiscal year 2015.
DigitalBTC executive chairman Zhenya Tsvetnenko said the underlying digital currency results highlight the earning capacity of the business, telling CoinDesk:
The company published its first quarterly report a month ago, reporting sales of 4,000 BTC, roughly $2.1m at the time. The company said it mined approximately 8,600 BTC since launching its mining operation.
Further, its original $4m investment in mining hardware was recovered prior to the publication of the quarterly figures, in under three months.
Industry first
Tsvetnenko added that he is pleased to announce the first financial results to be released by a bitcoin focused company on a major stock exchange.
“This is a first for our industry, and the transparency it provides into our operations and financial reporting is a new level of disclosure for our shareholders, and should help the understanding and acceptance of bitcoin in the broader investment community,” said Tsvetnenko.
Having mined 8,600 BTC in just over two months of operations, DigitalBTC accounted for roughly 3% of all bitcoins mined during the period.
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However, the company is adding more hardware – it says it has almost doubled its capacity in fiscal 2015 since it reported the first figure, meaning it is difficult to estimate DigitalBTC’s growing share of the network.
Financial results image via Shutterstock