DigitalBTC, an Australia-based bitcoin mining company, has decided to bolt the cryptocurrency business to focus on software development, according to ZDNet. The company announced at its annual meeting it would change the name of its parent company, Digital CC, to Digital X. The company, which trades on the Australian Securities Exchange (ASX), said it is changing its focus from bitcoin as a mechanism for storing value to software development.
The company also announced it is entering its second phase of beta testing for AirPocket, a cash remittance product it rolled out in May.
Digital CC Scraps Mintsy Relationship
Earlier this month, the company ended its partnership with Mintsy, a service that allows miners to mine different cryptocurrencies with the option of leasing them to other miners. Digital CC said at the time it held concerns with Mintsy and its ability to meet contractual requirements.
Zhenya Tsvetnenko, executive chairman, said Digital CC has become fully committed to the rollout of AirPocket, an app-based cross currency cash remittance product it rolled out in Latin America in May. CCN reported in May that the company raised $3.5 million to launch AirPocket.
Tsvetnenko said the company has since established agreements to accelerate AirPocket’s launch.
Company Has Faced Challenges
CCN reported last month that Digital CC reported a first-year net loss of $6.77 million on annual revenue of $6.4 million.
The company’s second quarter report in late July indicated $1.2 million in losses. Despite this loss, the company purchased an additional $29.6 million in bitcoins. It designated the bitcoins for digital Direct, which it rolled out at the end of last year, the purpose of which was to provide institutional users with liquidity.
Management, in reporting its first-year loss, told shareholders its results reflected a strong performance from its bitcoin operations and that it had made “significant progress” with AirPocket.