As per a report by The Sydney Morning Herald, Bitcoin firm Digital CC (ASX: DCC) has said that it is dumping ‘mining’ and is now entering the remittance market as it sees a more profitable scenario in money-transmitting operations.
What makes the news more worthwhile is the fact that this Bitcoin company was the first miner to be publicly listed on the ASX, and hence, its declaration is bound to create ripples in the market.
The report further cites Executive chairman Zhenya Tsvetnenko who said that the decision to shift out from the mining business was because the company was losing money. The Company had at the end of Q2, 2015 reported a negative operating cash flow of -$1.2 million.
He further said that “as much as we believe that Bitcoin as a financial instrument can be a valuable tool, we basically have the opinion that it is going to take longer than we thought.”
Tsvetnenko further explained that the reason behind the move was due to drop in the value of Bitcoin which made the company ponder over other ways to stay relevant. Bitcoin is currently trading near $235 thereby making the cost-intensive mining operations very unprofitable.Therefore, he is further quoted as saying that the company was gradually winding down the Bitcoin mining operations. He also stressed that the company feels elated to learn about the blockchain technology and use it for their operations ahead.
This happens to make the AirPocket application the first of its kind available in a public environment. In the press release issued to the media the company has informed that in the initial application phase this will be used by at least 50 users in the U.S. and the Dominican Republic to remit cash through the application’s innovative technology.