Former bitcoin miner and transaction processor Digital CC has terminated all bitcoin related operations by rebranding to Digital X to focus on its remittance product and blockchain-based software development AirPocket and Digital X Direct.
The company said:
"The rebranding represents a strategic change from a focus on bitcoin as a mechanism to store value to a focus on software development. While the company has made a strategic change towards applications within the remittance market, it is still leveraging its skills and experience gained within the bitcoin industry."
The Australian Securities Exchange-listed company made the decision due to the continuous decline of its bitcoin related operations and the termination of partnership between cryptocurrency mining company Mintsy and Digital CC earlier this month.
"Under such circumstances, [Digital CC] had no choice other than to terminate its role and relevant interests under the agreement,” announced executive chairman Zhenya Tsvetnenko at the time. “Digital CC also confirms it has no further commercial digital currency-related dealings with ventures associated with its former joint-venture partner. Digital CC is now fully committed to the commercial rollout of its AirPocket remittance product in Latin America.”
- Zhenya Tsvetnenko
The company also reported a net loss of US$6.77 million after taxes and negative earnings before taxes with a depreciation of US$3.16 after the first half of 2015. Though in June, Tsvetnenko stated that the team was generally satisfied with the strong performance of the company’s bitcoin operations.
"Despite the unfavourable depreciation of the bitcoin price, I am pleased with the growth the company has achieved from its bitcoin trading and mining activities, which continue to provide strong revenue generation," Tsvetnenko said.
In contrast to the depreciation of the company’s bitcoin-based operations, Digital CC reported successful development and commercialization of its remittance product AirPocket in Latin America. In May, Digital X raised US$2.5 million in a funding round to develop and roll out the remittance technology targeting underbanked regions particularly in Argentina and Brazil.
"We have made significant progress during the course of the year towards the development and commercialisation [of AirPocket], with a number of agreements in place to accelerate the launch and consumer uptake of the product," said Tsvetnenko .