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DIGITALX LIMITED — Capital/Financing Update 2014
May 5, 2014
64762_rns_2014-05-05_cd40b691-1857-41f7-8a80-48412c77562d.pdf
Capital/Financing Update
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ASX and Media Announcement 6 May 2014
digitalBTC Market Update – Bitcoin Mining and Trading Operations
Macro Energy Limited (“Macro” or the “Company”) is pleased to provide an update on the recent business activities of digitalBTC* in its Bitcoin mining and trading operations up to the end of April 2014.
Performance Highlights
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digitalBTC Bitcoin mining operations generated in excess of 1,700 Bitcoins in 42 days from the first instalment of BitFury mining hardware on 20 March 2014
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Second instalment of state of the art BitFury mining hardware expected to be delivered and operational in May 2014
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digitalBTC generates immediate revenues upon installation of new Bitcoin mining hardware
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Part sale of first BitFury mining hardware contracted at a premium to initial purchase price
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Trading desk operations generate a return of 31% from funds invested up to 30 April 2014
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Ongoing development of Bitcoin retail consumer product line
digitalBTC’s mining operations involve buying state of the art mining hardware, mining Bitcoins and then selling the hardware as required to keep at the forefront of technology (typically within two to six months of purchase). digitalBTC’s trading desk trades digital currencies such as Bitcoin, through major internationally recognised exchanges using specialised strategies which include arbitrage, buying long positions, selling short positions, futures contracts and market making. Bitcoins generated from mining operations are liquidated into US dollars in association with these trading activities – typically several times a week on various Bitcoin exchanges (Bitcoin market price today is approximately US$430 for 1 Bitcoin, ref. Coin Desk Bitcoin Price Index at www.coindesk.com/price).
Positive Returns from First Instalment of BitFury Hardware
As announced on 3 April 2014, the purchase of the first instalment of BitFury Bitcoin mining hardware enabled digitalBTC to substantially increase its mining activities (the verification of Bitcoin transactions), which generates Bitcoins as a revenue stream for the digitalBTC business. The mining operations have generated in excess of 1,700 Bitcoins following the first deployment of Bitfury mining hardware on 20 March 2014.
In addition, digitalBTC is investing a further US$2,000,000 for the second instalment of state of the art Bitcoin mining hardware from BitFury, which is expected to be operational during May 2014 and will substantially increase digitalBTC’s rate of Bitcoin mining. The second instalment of BitFury mining hardware will approximately triple the current mining capacity of digitalBTC, which is already developing into one of the largest Bitcoin miners in the world.
As a key component of digitalBTC’s business plan to maintain its mining hardware at the forefront of current Bitcoin mining technology, and in preparation for the receipt of the second instalment of $2,000,000 of BitFury hardware, digitalBTC has sold a portion of its first instalment of BitFury mining hardware. These initial contracted sales of hardware have been at a premium to the original cost price, with the funds from these sales helping to finance future hardware acquisitions.
digitalBTC’s Executive Chairman, Mr Zhenya Tsvetnenko, said the strong performance of the digitalBTC mining operations and trading desk during the past few months has endorsed the company’s business strategy as it related to mining and trading of Bitcoin.
“We are very pleased with our initial Bitcoin mining operations, including the returns generated by liquidating a portion of the hardware at a premium to the cost price to keep at the forefront of mining technology,” said Mr Tsvetnenko.
“Our returns generated by the digitalBTC trading desk during the past few months have also been excellent.
“Looking forward, the more significant value creation opportunities that we are building towards are the retail, mobile focused products that we have in development. Our aim with these products will be to capture the rapidly increasing demand for simple and easy to use digital currency applications,” said Mr Tsvetnenko.
digitalBTC Mining Operations- Powered by Renewable Energy
digitalBTC’s Bitcoin mining operations are hosted in Iceland in the northern Atlantic, approximately 2,000km from mainland Europe. This takes advantage of Iceland’s 100% renewable energy, with power being generated from both geothermal (75%) and hydroelectric (25%) sources.
Drawing only renewable energy means the power is low cost, long-term and not susceptible to unpredictable price fluctuations associated with fossil fuels. It is also 100% carbon neutral. Iceland’s perennially cold climate allows natural cooling of data centre hardware, avoiding additional expense. Linked to the United States, the UK and mainland Europe via modern, multi-terabit connections, Iceland is a great location for digitalBTC’s Bitcoin mining operations.
www.digitalBTC.com
*Macro announced on 13 March 2014 its intention to enter into the digital currency sector through the proposed acquisition of Digital CC Holdings Pty Limited and its wholly owned operating entity digitalBTC (“digitalBTC”).
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For Further information, please contact:
Macro digitalBTC Media Brett Lawrence Zhenya Tsvetnenko Shane Murphy, FTI Consulting Managing Director Executive Chairman Direct: +61 8 9485 8804 Tel: +61 8 9389 2000 Tel: +61 8 9473 2525 Mobile: +61 420 945 291 Email: Brett Mitchell Alex Karis [email protected] Corporate Advisor CEO Twitter: @ShaneWMurphy Tel: +61 8 9320 4700 Tel: +1 (646) 374-1818 (x) 1010 Skype: shane.murphy999