DigitalBTC Selloff Prompts Questions from Australian Securities Exchange

Australian bitcoin company Digital CC Limited, which trades as ‘digitalBTC’, experienced a big selloff on the Australian Securities Exchange (ASX) last Friday.
The sudden and drastic increase in trading volume prompted the ASX to send a formal notice to the firm the very same day, asking whether or not there was any undisclosed information that could have prompted the selloff.
The firm started trading on the ASX following a reverse takeover of Digital CC Limited last year.
Following the bitcoin price crash on 14th January, digitalBTC’s trading volume spiked from under 10,000 – 48,000 shares per day to 416,125 shares last Friday.
Company blames bitcoin slump for spike in volume
In response to the ASX notice, Digital CC secretary Rachel Jelleff said the company was not aware of any information which would explain the recent trading spike, as all relevant information was disclosed to the market already.
Jelleff went on to explain that the low price of bitcoin was the most likely culprit behind the selloff:
‘In recent days the bitcoin price has hit a 12 month low of $173, from a price of over $800 in January 2014. The current bitcoin price impacts the profitability of the company’s ongoing bitcoin mining activities and the value of its bitcoin inventory, which is what the company believes is the reason for the recent price movement.’

This post was published at Coin Desk on January 19, 2015.