DigitalBTC Buys $10.1M in Bitcoin While Running Loss of $1.2M

digital-btc-insolvent-buys-10-million-in-bitcoins-takes-lossIn this year’s second quarterly report, Australian firm DigitalBTC says that it has put up $1.2 million in losses, bringing the total losses for the year to $2,744,000. Despite this, the company has purchased a total of over $29.6 million in bitcoins this year, with $10,116,000 of that being in this quarter. The bitcoins are designated for digitalX Direct, the company’s “flagship product” which launched at the end of last year.

DigitalX Direct’s purpose is to provide liquidity to institutional users, such as merchants and Bitcoin sellers. Previously much of their customer base had been Bitcoin trading companies.

The company says that digitalX Direct is doing well, writing in the report:

During the quarter it achieved record sales revenues of $5.5 million (unaudited). This is a significant increase of 45% on the $3.8 million reported in Q1 2015. Since launching the product at the end of 2014 the product has seen steady growth in revenues. […] The customer base has also been shifting to retail Bitcoin suppliers and away from professional trading companies, which has led to more consistent daily volumes and higher quarterly revenue.

According to the report, the company has cash reserves of $2.6 million in cash and $1 million in bitcoins as of last month. DigitalBTC seems to expect an uptick in revenues when it launches its next product, AirPocket, a remittance application, which they claim to be presently beta testing.

So far no one has come forward to complain about the operating loss or the trajectory of DigitalBTC, indicating that investors are content with things as they stand. They recently created the following video to highlight the value proposition of AirPocket.

Images from Shutterstock and Digital CC Ltd.