CoinDesk reports that DigitalBTC is procuring new mining hardware from Israel-based Spondoolies-Tech in a bid to cut costs.
The company’s stated business strategy envisions income from mining and trading activities. In addition, it is working on rolling out “retail consumer products including digital currency mobile applications.” It is reportedly working to accelerate development for the latter, which may offer more opportunity than its current operations that are heavily dependent on bitcoin’s price.
The slumping price of bitcoin, which has recovered somewhat in recent days, has increased the financial stress faced by mining income dependent businesses like DigitalBTC. Its publicly traded shares (ASX:DCC) on the Australian Securities Exchange (ASX) have recently fallen to their lowest levels since mid-2013 amid several consecutive quarters of negative earnings.
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DigitalBTC said that it is investing $700,000 in the new equipment, which will increase its mining capacity by 40%. BitFury had reportedly been the company’s supplier for its equipment until now.
Spondoolies-Tech CEO Guy Corem previously told DC Magnates that newer generations of its hardware can achieve power efficiencies below 0.5 J/GH.
DigitalBTC has also entered a new contract with data center provider Verne Global, which envisions a 20% reduction in costs across half its power commitment.
Two months ago, DigitalBTC CEO Zhenya Tsvetnenko reportedly put his prestigious Applecross home up for sale. Located in a premium neighborhood in suburban Perth, he had purchased it for $9.5 million in 2008. He is reportedly selling because his venture, along with his wife’s fashion business Zhivago, have left them with little time to build their dream home. “It’s just not the right time for us, so we are reshuffling our property portfolio and reinvesting the money,” he said.