Former bitcoin miner Digital X reports $1.2m Q3 loss

[alyssa85]

http://www.zdnet.com/article/former-bitcoin-miner-digital-x-reports-1-2m-q3-loss/

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.
Latest Australian news.

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.

...In May, Digital X raised AU$3.5 million to fund the development and rollout of AirPocket, an app-based peer-to-peer, cross-currency cash remittance platform. After rebranding, Digital X announced its focus would be on the AirPocket platform, saying that the rebranding represented a strategic change from a focus on bitcoin as a mechanism to store value to a focus on software development.

The company said it is currently involved in discussions with partners in the US and Latin America around AirPocket; however the product is not available in Australia.

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[LiteCoinGuy]

that could change with higher prices in Q4 

[botany]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

[alani123]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

For a market cap like theirs, it's more than worrying actually. I wouldn't be surprised if they announced that they were going under all of a sudden, it's not like we haven't seen this before with Australian listings. 

[Kprawn]

The strategic move away from Bitcoin mining was actually not a bad decision in the end... If they were still mining after the Halving, they would have had to close their doors. We will see a lot of

companies going under in the west, once the Bitcoin rewards are halved... and mining will get more centralized in countries where the electricity are being subsidized. { China } It is just unfortunate,

but a natural reaction, when you have surplus cheap energy. If the western governments want to get in on this action, they will have to find ways to subsidize Bitcoin mining and offer them cheaper

electricity. { Tesla and big companies in other countries gets cheaper electricity / rates as a incentive for these countries to operate in their areas.. Why not Bitcoin? } They score TAX income and it

increase job opportunities. 

[BellaBitBit]

Isn't this a natural result of the halving coming and less coins will be produced meaning less mining?  Looks like it is happening to others as well.

[whored]

The strategic move away from Bitcoin mining was actually not a bad decision in the end... If they were still mining after the Halving, they would have had to close their doors. We will see a lot of

companies going under in the west, once the Bitcoin rewards are halved... and mining will get more centralized in countries where the electricity are being subsidized. { China } It is just unfortunate, but a natural reaction, when you have surplus cheap energy.

Only if by "surplus," you mean "burning coal like there's no tomorrow." China generates 70% of its electricity from coal

Isn't this a natural result of the halving coming and less coins will be produced meaning less mining?  Looks like it is happening to others as well.

Dunno. Ramping up like a champ thus far https://bitcoinwisdom.com/bitcoin/difficulty

[Redrose]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

They're dropping like flies...
https://www.cryptocoinsnews.com/bitcoin-mining-developer-spondoolies-shuts/

Really ?! Spondoolies Tech closed ?! I thought it was a big well established company, that will never close. Now if BitFury closes, Bitmain would be alone ...

[Yakamoto]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

They're dropping like flies...
https://www.cryptocoinsnews.com/bitcoin-mining-developer-spondoolies-shuts/

Really ?! Spondoolies Tech closed ?! I thought it was a big well established company, that will never close. Now if BitFury closes, Bitmain would be alone ...

The thing is there are not a lot of mining hardware manufacturers that can compete with constant new improvements to the chips and efficiency. I doubt BitFury is going to close anytime soon, since a lot of the weaker competition is being knocked out and they can secure a larger market share, but we will have to see. There's a lot of uncertainty when it comes to the mining technology aspect of Bitcoin, and this is a lot of speculation.

[DarkHyudrA]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

But a loss of 1 million? It's too much. They surely are having a problem.

[alyssa85]

It is developing a new product.
Losses in initial stages is nothing to be worried about. 

For a market cap like theirs, it's more than worrying actually. I wouldn't be surprised if they announced that they were going under all of a sudden, it's not like we haven't seen this before with Australian listings. 

I suppose the question we should really be asking is, are there any bitcoin start-ups that are profitable? I can't think of any - they need mass adoption to make it work, and that side of things has stalled. (Though Satoshi/Craig provided some nice publicity and got people talking about bitcoin again).

[BlueTemplar]

We are in a trough of interest and adoption, but there will be another peak to come when some economic mess comes along or as the tech/market continues to mature.

[Evildrum]

The tech community is heading towards a drop off soon as it has had a long run with Unicorns sustaining it.
Once the bubble bursts we could see a downward trend for bitcoin as people stop bringing ideas in to be bought out.

Does the current Quarter loss have anything to do with the current regulatory moves by the Aussie Government?
If its just realigning the ponies I would not worry to much about one quarter and would watch to see what happens in the next one before
spelling their demise.

[alani123]

The tech community is heading towards a drop off soon as it has had a long run with Unicorns sustaining it.
Once the bubble bursts we could see a downward trend for bitcoin as people stop bringing ideas in to be bought out.

Does the current Quarter loss have anything to do with the current regulatory moves by the Aussie Government?
If its just realigning the ponies I would not worry to much about one quarter and would watch to see what happens in the next one before
spelling their demise.

Nah, I don't think that it's the Government's fault. Regulation in Australia isn't even as bad as in other regions. Safest assumption would be to say that it's a result of bad managment. Afterall, not many bitcoin companies are poised to survive in the longrun, we've already seen many go down. As the rush quiets down we'll only see sustainable businessed surviving.