Digital CC raises AU$3.5m to roll out AirPocket in Latin Amercia

Australian bitcoin company Digital CC has completed its latest funding round valued at AU$3.5 million.

While no specific details of who the latest investors are revealed, the company has said the capital has been invested by domestic and international private equity firms and "sophisticated" investors, including a AU$200 million US-based specialist technology hedge fund.

According to Digital CC, it initially was only looking to raise AU$3 million but the offer was oversubscribed, mainly because an unnamed US hedge fund had bid for the whole initial amount.

The company said the funds will be used to accelerate the roll out and commercialisation of its AirPocket bitcoin wallet product in Latin America and the Caribbean.

Earlier this month, Digital CC announced it signed a memorandum of understanding to form a joint venture for the distribution of AirPocket, which is due for launch in the second-half of 2015.

The joint venture equity partners consist of US finance and banking industry identities Sanjay Santhanam, Juan Carlos Barrera, and William Witenberg, with Jorge Nicolau taking a seat on the advisory board.

Under the terms of the venture, Digital CC will hold a 75 percent stake in the joint venture, while its equity partners will have the remaining 25 percent.

The move to focus on the international remittance market is part of a larger strategy by Digital CC to retreat from the bitcoin market.

In March, the company had reported a net loss of $2.3 million for first half of the 2014 financial year due to bitcoin's fluctuating value.

At one point, Digital CC was left answering some awkward questions from the ASX after its share price after its share price went into freefall, while share trading volume skyrocketed.