Fintech firm Digital X has reported a third quarter operating loss of $1.27 million.
For the three months ended March 31, 2016, Digital X’s bitcoin trading activity produced approximately $5.7 million in revenue, which the company said helped to offset the cash burn its AirPocket remittance product caused, as well as the “winding down” of bitcoin mining.
Previously, Digital X was listed on the Australian Securities Exchange (ASX) as DigitalBTC, undergoing not only a name change in October, but a shift in business model as well.
DigitalBTC, trading as Digital CC, was formerly solely involved in bitcoin mining, a procedure whereby a company is rewarded with the cryptocurrency for performing calculations that secure the blockchain and confirm the validity of a transaction.
However, the company did not ditch the cryptocurrency altogether, spending $6.7 million on the purchase of bitcoins for its liquidity desk, and over half a million on the power and hosting requirements for the cryptocurrency the past quarter.
Referencing the ASX, which is implementing its own blockchain technology to replace or upgrade the ASX’s main trading and post-trade platforms, executive chairman Zhenya Tsvetnenko said it is not only banks employing the technology in its operations.
“The last quarter has