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.

AccessTimeIconAug 29, 2014 at 3:30 p.m. UTC
Updated Aug 18, 2021 at 3:15 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

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.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • 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:

    “Bitcoin mining, the company’s core cash generator, delivered the majority of EBITDA. This trend has continued into the 2015 financial year with a further $1.3m invested in mining hardware post year end, increasing the company’s bitcoin mining capacity by approximately 90%.”

    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:

    “Aside from some non-cash accounting related adjustments, I couldn’t have hoped for a better first result. We are committed to continuing to deliver results and performance against our business plan and targets in the current financial year, in order to build a track record of strong earnings for our shareholders.”

    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.

    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

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.