Bitcoin company DigitalBTC sees $1.2m in negative cash flow

Australian bitcoin operation, DigitalBTC has recorded a negative quarterly operating cash flows of $1.2 million, which sees its 12-month year-to-date cumulative negative operating and investment cash flows push $4.54 million.

In a statement, DigitalBTC -- which trades on the Australian Securities Exchange (ASX) as Digital CC Limited -- told its investors that it was ready to diversify its operations by shifting into the global remittance market.

"We're pleased with the progress we've made during the quarter, in particular in relation to the AirPocket product," Digital CC's executive chairman Zhenya Tsvetnenko said

"DigitalBTC is funded and strategically partnered to accelerate AirPocket roll out."

The company expects to launch AirPocket, an app-based peer-to-peer, cross-currency cash remittance platform, in selected Latin American markets in later this year following a beta trial that began on iOS in mid-June. DigitalBTC said that it will commence Android platform testing by the end of 2015.

Despite the focus on AirPocket, the company's DigitalX Direct bitcoin product recorded unaudited growth of 45 percent during the quarter, reporting revenue of $5.5 million.

The company still recorded a cash inventory of AU$2.6 million as at June 30 2015, with an additional AU$1 million tied up in bitcoins. The company raised AU$3.5 million earlier this year, with 15.9 million shares issued at AU$0.22 each.

After publicly trading for only three and a half months following a reverse takeover of investment firm Macro Energy, DigitalBTC recorded an underlying profit of $0.6 million for Q2 2014.

However, the end of September 2014 saw the company report a net operating cash flow of AU$-261,000, claiming a cash reserve of AU$4.36 million at the end of September.

In March, the company experienced a half-year loss of $2.3 million, with Tsvetnenko defending the digital currency's potential despite its fluctuation, which was attributed the six-month loss.

"The statutory loss recorded for the half has been impacted by necessary accounting adjustments flowing from digital currency price declines," Tsvetnenko told shareholders in a statement (PDF).

"None of these movements impact the core innovation of digital currencies and their potential to rapidly revolutionise the international payments sector."