HK-Listed Firm Invests in BTCTrade & BTCSide, Admits Incurring BTC Losses

China Binary Sale Technology Limited, a company listed on the Hong Kong GEM Board, released its 2014 third quarter financial results revealing that the group had incurred losses of 223,000 yuan from purchases of bitcoins.

The company, which mainly earns revenue from its Greater China operations, still managed to earn profit before tax of approximately 21.533 million yuan, representing an increase of 3.136 million yuan or 17.0 percent over the corresponding period of 2013.

CBST also indicated that it had invested in two companies, one that publishes bitcoin news and the other a major bitcoin trading platform that also supports litecoin and dogecoin trading. The group reported that the transactions were large investments, but did not specifically disclose the sum.

The Q3 report stated this about the two investments:

The Group invested in a company engaging in bitcoin information and social communication in the first half of 2014. In the third quarter of 2014, the Group also invested in a company, which principally engaged in bitcoin trading and at the same time supported the trading of other virtual currencies such as litecoin and dogecoin, to further expand its footprint in the field of bitcoin and various virtual currencies.

Regarding its bitcoin purchases and losses, CBST noted:

During the Period, the Group invested in and purchased certain amount of bitcoins. As the price of bitcoins fell recently, the Group incurred losses on changes in fair value of approximately RMB223,000.

According to various Chinese news reports, the two companies acquired by CBST are exchange BTCTrade and publisher BTCSide.

CBST’s core business has been the provision of online transaction services for game operators and gamers over its proprietary Shenzhoufu System, as well as mobile top-up services to mobile subscribers.

The company also has a service that allows overseas gamers to pay for online games with bitcoins.

The exchange BTCTrade was founded in Vancouver, Canada by Zhang Shousong and began trading in May 2013 with a focus on Chinese traders. In June 2014, the exchange launched an international version affiliated with Hong Kong company Coincloud Techonology. The exchange claims on its website that it has 250,000 customers, and a regular daily trading volume has reached over 50,000 bitcoins.

In a news report on CBST’s financials, Zhang told Chinese government newspaper China Daily that BTCTrade is a nationally recognized big currency exchange that continues to improve the experience of Chinese users in global currency trading.

BTCSide CEO Wang Jin indicated that he was very optimistic about bitcoin’s future development. He believes they will have a membership of more than 400,000 users and will inject vitality into the virtual trading community and “more diversification in the entire industry chain of incubation.”

Free AllCoinsNews Email Updates
Get the latest cryptotoken market news and blockchain developments!
We respect your privacy.