ASX ANNOUNCEMENT

6 August 2014

Operational Update


Digital CC Limited (trading as digitalBTC) (ASX: DCC) (the "Company" or "digitalBTC") is pleased to provide an update on the recent business activities for July 2014.

Highlights ~1,800 bitcoins (~US$1.05 million1) earned from bitcoin mining activities in July

~9,000 bitcoins earned to end-July since inception of the Company earlier in the year

Bitcoins earned can be immediately liquidated to a fiat currency (USD, EUR, AUD etc) or used to generate further returns by providing liquidity to major international exchanges

Bitcoin mining equipment cash cost of US$4 million was repaid in July via Bitcoin mining proceeds. The company continues to generate revenue from bitcoins earned as well as additional cash flow from liquidating the mining hardware

Bitcoin mining equipment is progressively upgraded to new, state of the art equipment to remain at the forefront of technology

Performance of the Bitcoin mining and liquidity desk operations enables the Company to continue the rapid advancement of its retail application development

Summary of Bitcoin Mining Operations

Month of July 2014

For the financial year

ended 30 June 2014

Bitcoins earned from mining

~1,800 bitcoins

~7,200 bitcoins

Bitcoins sold from mining

~570 bitcoins

~4,000 bitcoins

Cash receipts from bitcoins sold from

mining

~US$365,000

~US$2.1 million

Avg. sales price per bitcoin

US$640 / bitcoin

~US$525 / bitcoin

Bitcoins held at month end2

~4,900 bitcoins

~3,600 bitcoins

Market value of all bitcoins held

~US$2.8 million3

~US$2.3 million4

Note 1: Based on price per bitcoin of US$585 on 5 August 2014

Note 2: Includes bitcoins purchased as part of Liquidity Desk operations Note 3: Price per bitcoin of US$580 on 31 July 2014

Note 4: Price per bitcoin of US$640 on 30 June 2014

Summary of Company Working Capital Position

On 23 July, we received a full refund of a US$637,000 security deposit relating to the recent US Marshalls service auction of bitcoin.

Closing cash at 31 July was US$5.2 million with a further US$1.1 million VAT refund expected to be received during the quarter.

Market value of all bitcoins held was approximately US$2.8 million.

digitalBTC's Executive Chairman, Mr Zhenya Tsvetnenko, said that he was very pleased with the continued performance and progress made by the Company since relisting.
"In line with the business plan, the Company continues to realise value creation from a strategic set of operations," said Mr Tsvetnenko.
The Bitcoin mining hardware earns bitcoins which can be liquidated into traditional currencies (USD, EUR, AUD etc) or used to create added value in the company's Liquidity Desk Operations. digitalBTC then progressively on-sells the mining hardware and replaces it with the latest state of the art hardware to keep at the forefront of technology.
"This value creation enables the Company to allocate significant time and resources to the development of the digital currency retail consumer applications," said Mr Tsvetnenko.
digitalBTC intends to release the company's preliminary final report (Appendix 4E) to the market in the week beginning 26 August. The preliminary final report will consolidate the digitalBTC business with the previous operations of Macro Energy, as well as detailing underlying performance of the Bitcoin mining operations.
-ENDS-

For further information, please contact: digitalBTC

Zhenya Tsvetnenko Executive Chairman Tel: +61 8 9473 2525
Alex Karis
CEO
Tel: +1 (646) 374-1818 (x) 1010

Media

Shane Murphy, FTI Consulting
Direct: +61 8 9485 8804
Mobile: +61 420 945 291
Email: shane.murphy@fticonsulting.com
Skype: shane.murphy999

Note 1: Price per bitcoin was US$580 on 31 July 2014

Note 2: Expect to receive ~US$1.1 million VAT refund from Iceland tax authority in the current quarter

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