Sign up to get the latest stories and insights delivered to your inbox – free, every day.
The sharp fall in the price of Bitcoin has hit Locate Technologies’ balance sheet.
The formerly ASX-listed, now NZX-listed transport software company has adopted Bitcoin as its principal treasury reserve asset because it believes it is the best long-term store of value.
The company owns 12.3 bitcoin, which it purchased at a total cost of $2.2m. Its latest quarterly update shows that, as of February 5, the carrying value of its holdings is $1.5m. The decline comes as the price of bitcoin has fallen close to 40% over the past six months.
Crypto aside, the company’s revenue in the three months ended December rose to $1.88m, compared with $1.83m in the same period a year ago.
It reported an ebitda loss of $829,000 in the quarter, compared with a $32,000 loss in the same period a year ago, although this included the cost of migrating to the NZX from the ASX.
Looking ahead, the company expects to expand its services to the UK, introduce AI into its software, and buy more bitcoin.