Digitalx Limited · ASX:DCC
Digitalx — Digital CC — Shareholder Meeting (November 2014)
27 slides from Digitalx's shareholder meeting presentation, Nov 20, 2014
Slide 1: A Digital Currency Technology Company - AGM Presentation
For personal use only A Digital Currency Technology Company Annual General Meeting Presentation - November 2014 (ASX: DCC)
Slide 2: Disclaimer
Disclaimer For personal use only This presentation contains summary information about Digital CC Limited (“Digital CC”) and is current as at 20 November 2014. The information in this presentation is of general background and does not purport to be complete. It should be read in conjunction with Digi
Slide 3: Digital CC Limited - Overview
Digital CC Limited - Overview For personal use only digitalBTC is a technology company, first mover in the new digital currency sector • First digital currency company listed on a major exchange - Digital CC Limited (ASX:DCC) • Revenue $4m and EBITDA $2.5m1 for 3.5 months of significant operations t
Slide 4: Capital Structure and Major Shareholders
Capital Structure and Major Shareholders (ASX- DCC) For personal use only Capital Structure Substantial Shareholders Current Shares on Issue 168,772,977 Zhenya Tsvetnenko (Executive Chairman) 25.6% Performance Rights (2015)1 $9m 16,633,420 Alex Karis (CEO) 12.2% EBITDA Performance Rights (2016) 2 $3
Slide 5: Audited Financial Results – June 2014
Audited Financial Results – 30 June 2014 For personal use only Preliminary FY14 Bitcoin mining and trading segment results1 from only 3.5 months of significant operations: • Revenue US$4.0m • Normalised EBITDA US$2.5m • Underlying NPAT US$0.6m1 Statutory financial result of Digital CC Limited: • NLA
Slide 6: Why Bitcoin Can Revolutionize the World's Financial Systems
Why Bitcoin Can Revolutionize the Worlds Financial Systems For personal use only Set to disrupt a $1 trillion payments industry ‒ In 2013, payments businesses generated*: ‒ $425 billion in transaction revenues ‒ $336 billion in account-related revenues ‒ $248 billion related to credit cards ‒ Split
Slide 7: Who Is Backing Digital Currencies To Change The World?
Who Is Backing Digital Currencies To Change The World? For personal use only More $ invested to date in Digital Currencies technology than the internet in early 1990’s Richard Branson “I believe in its potential, the capacity it has to transform global payments is very exciting.” Founder of Virgin R
Slide 8: How Consumers Use Digital Currencies
Included How Consumers Use Digital Currencies For personal use only Payment of Goods & Services Transfer Money To Anyone Consumer can make purchases by scanning Payments can be made to anyone, anywhere code from register and clicking “PAY” on their in the world instantaneously, securely, mobile devi
Slide 9: Bitcoin Mining
Bitcoin Mining Bitcoin Mining For personal use only Transaction Verification • Bitcoin Mining is currently the principal revenue and earnings generator • Majority of the underlying ~US$4.0 million in revenue and ~US$2.5 million EBITDA at 30 June 20141. • The Company has now made two investments – US
Slide 10: In Development: Mobile Application
In Development For personal use only What’s in Your Pocket? • In development and will launch product (beta) in early 2015. • 35,000+ pre enrolments in less than 30 days. A mobile application that makes online transactions simpler and more secure. • Will allow users to transfer funds instantly, anywh
Slide 11: In Development: Cloud Mining Contracts
In Development For personal use only Cloud Mining Contracts: • Allow customers to participate in the development of bitcoin and alt-coin cloud mining products. • Is intended to offer multiple packages to accommodate different budgets. • Competitively priced power and hosting included in the price of
Slide 12: In Development: digitalX Mintsy
In Development For personal use only • Launch digitalX Mintsy in late 2014 • Joint Venture partner will actively promote digitalX Mintsy to its customer base of over 250,000 registered users • Revenue streams to include: ‒ Sales of cloud mining contracts ‒ Collection of fees on the trading of those
Slide 13: digitalBTC Current Operations
digitalBTC Current Operations For personal use only Wholesale/ Institutional Liquidity: • Expand Liquidity Desk operations with digitalX Direct • Automated private bulk liquidity platform for institutional investors and large commercial operators • First beta transactions commenced, initially with a
Slide 14: In Development: Sophisticated Consumer Datacentre
In Development For personal use only Sophisticated Consumer: Datacentre • Development of a turn key hosting solution for both SHA-256 and Scrypt miners. • Intend to provide secure facility with power, cooling and bandwidth to consumers. • Customers to provide mining equipment and we will host in our
Slide 15: Bitcoin Mining - Current Core Revenue Driver
Bitcoin Mining - Current Core Revenue Driver For personal use only Cumulative BTC mined to 30 September 2014 14,000 ~13,340 btc 30 Sep 2014 12,000 7,200 btc 30 June 2014 10,000 Bitcoins (BTC) 8,000 6,000 4,000 2,000 - 20-Mar-14 20-Apr-14 20-May-14 20-Jun-14 20-Jul-14 20-Aug-14 20-Sep-14 15
Slide 16: digitalBTC Board and Management
digitalBTC Board and Management For personal use only Zhenya Tsvetnenko Alex Karis Executive Chairman Chief Executive Officer Mr. Tsvetnenko is a highly successful businessman in the mobile Mr. Karis is Non Executive Chairman and founder of Karis Marketing premium messaging services sector including
Slide 17: Appendices
For personal use only A Digital Currency Technology Company Appendices www.digitalbtc.com
Slide 18: Australian Regulatory Environment
Australian Regulatory Environment For personal use only The Australian Taxation Office has recognised Bitcoin as personal property • ATO recognises Bitcoins (and other digital currencies) as personal property, subject to CGT • Existing personal use exemption in CGT code for purchases with Bitcoins u
Slide 19: What are Digital Currencies?
What are Digital Currencies? For personal use only As a Digital Currency, Bitcoin is both a medium of exchange and more importantly a revolutionary payments system • “Digital currencies” are a new electronic class of “mediums of exchange”. ‒ Perform the same function as money (store and spend value)
Slide 20: Disruptive Technology
Disruptive Technology For personal use only The most disruptive part of Bitcoin is the Peer to Peer payments • Solves a long term “Double Spend” problem – how to send value from A to B, and prevent A from also sending the same value to C. • Traditionally solved by putting a bank in the middle – bank
Slide 21: How does Bitcoin Work?
How does Bitcoin Work? For personal use only Peer to Peer Payments • All users create or have created their own individual wallet. • All transactions get initiated then posted to the Bitcoin network. The network is a cloud structure consisting of the individual participants and the Bitcoin “miners”
Slide 22: Why Bitcoin Matters
Why Bitcoin Matters For personal use only Readily Low Friction Safe & Instant Low Store of Implemented Payments Secure Payments Transaction Value Costs Only infrastructure Global network Transactions Transactions No transaction Finite money is internet & distribution are secure and confirmed costs f
Slide 23: Where is Digital Currency/Blockchain investment currently At?
Where is Digital Currency/ Blockchain investment currently At? For personal use only • Bitcoin “mainstream” approximately 12 months ago • ~US$380 million total VC investment in digital currency start-ups to 24 October • Major merchants now accepting bitcoin– Dell, Expedia, Dish Network etc. • Price
Slide 24: Mainstream Adoption Progressing
Mainstream Adoption Progressing For personal use only ~ 75,000 Merchants Accepting Bitcoin Dish Networks to accept bitcoins in the third Expedia, one of the world's largest travel quarter for satellite subscriptions (US$27bn agents now accepting bitcoins for hotel market company with US$14bn in reve
Slide 25: Where is Bitcoin Headed?
Where is Bitcoin Headed? For personal use only Massive disruption ahead • Seeking to drive adoption. • Bitcoin is the protocol, now need to deliver the “breakthrough app” to implement. • Global harmony / consistency in regulation. 25
Slide 26: Why Bitcoin Leads
Why Bitcoin Leads For personal use only Cryptocurrencies in The growth in transaction volumes, global adoption rates and total market Circulation value highlights a enormous gap between bitcoin and its closest peer. The value of bitcoin in circulation is over 20x higher than its closest rival – Lite
Slide 27: Risks
Risks For personal use only Company Specific Key Person Risk There are a number of specific risks involved for the The responsibility of overseeing the day-to-day operations Company, and consequently its shareholders. These include and the strategic management of the Company and Digital risks specif