Bitcoin market surge bolsters Digital X

Fintech firm Digital X has reported a total operating and investing cash flow of $410,000 for the first half of the 2016 financial year on the back of a second quarter increase of 33 percent year-on-year to $746,000.
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 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.
However, the company did not ditch the cryptocurrency altogether, spending over $9.54 million on bitcoins and $623,000 on the cost of running and hosting its bitcoin mining equipment in the three months ending December 31, 2015.
As of December 31, 2015, Digital X said it held the equivalent of $400,000 in bitcoin, along with $3 million in cash. The company attributed its cash flow increase to a rise in transactions and improved bitcoin prices.
“A surge in Bitcoin market sentiment and trading has underpinned Digital X’s strong cash position in the December quarter with the company’s trading desk increasing the amount of bitcoins held during the quarter,” Digital X told shareholders.

This post was published at ZDNet on January 29, 2016 —.