Bit Trade
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Bit Trade Bringing the world of digital assets to your fingertips and changing the way people invest in the age of blockchain.
  • Finance
  • Internet Business
  • A$92,700

    invested

  • 18.5% funded

  • 0

    time left

  • 4.8% - 23.2%

    min - max equity offered

  • A$500,000.00 - A$3,000,000.00

    min - max investment sought

  • A$450.00

    min investment parcel

OFFER IS CLOSED
Salaries

How much do you pay yourselves?

Alexandros Dermatis posted on 15.11.2018

Hi Alex that’s a really important question.

The total employment costs for our staff and contractors for last financial year are included in the offer document in the “Historical Financials” section (pgs 38-41) and we have highlighted the remuneration for our Directors on page 41.

For easy reference, here is a summary:

Total employment costs include employees and contractors, superannuation and related on-costs ending 30 June 2018: $2,021,477.

The Director remuneration is set out as follows:
Executive Director - Jonathon Miller (Managing Director/): $150,000 plus superannuation
Executive Director - Robbie Mudrajiza (Head Product Engineer): $150,000 plus superannuation
Non-Executive Directors are paid $2,000 per month

I hope that helps and let me know if you have any other questions.

Kind regards,
Jonathon

Jonathon Desmond Miller posted on 15.11.2018

Replied to Alexandros Dermatis

Financial Statement and apparent consolidation

I am considering an investment and have noted that the financial statements provided are consolidated with Bit Trade Ltd (UK) and Digital Blue Solutions Pty Limited (from 13 November 2017) and the financial statements for BTA Solutions Canada Limited are separately provided in the appendix B.

Since BTA Solutions Canada Limited is purely the entity that pays wages to customer service staff, holding no significant tangible assets, I can only assume that the loss reported by BTA solutions needs to be fully deducted from Bit Trade's profit. Unless you disagree?

That being the case, the 'consolidated' P&L of Bit Trade Limited includes $525,367 for asset impairment. Is there a reconciliation of this as I am hoping to see that Bit Trade Limited have impaired the value of the loan made to BTA Solutions Canada Ltd as it would have been needed to meet staff wage costs only (i.e. - should be expensed in the consolidation).

Simon Bird posted on 13.11.2018

Hi Simon thanks so much for your questions.

The financial statements prepared for the year ended 30 June 2018 have been prepared according to Australian Accounting Standards on a consolidated basis with entities that Bit Trade had 100% ownership of. As BTA Solutions Canada only joined the consolidated group after 30 June 2018 its accounts are not included in the consolidated accounts. The 2018 accounts for this entity were included in the Appendix for potential investors to review.

For the 2019 financial year, the BTA Solutions Canada will be consolidated with the parent entity, Bit Trade Limited. Therefore, inter-entity loans will be eliminated on consolidation and costs of Canada will be expensed accordingly.

The consolidated P&L at 30 June 2018 for Bit Trade includes an impairment of $525,367 for intangible assets which is not connected with BTA Solutions Canada. These intangible assets are Cryptocurrencies that Bit Trade Limited held on its own account and were revalued to market value at 30 June 2018.

I hope this makes it clearer and I’m happy to answer any other questions you might have.

Kind regards,
Jonathon

Jonathon Desmond Miller posted on 14.11.2018

Replied to Simon Bird

  • > Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
  • > Company: Bit Trade Limited Securities purchased are for direct equity in Bit Trade Limited.
  • > Security Type: Ordinary Shares
  • > Fees Paid by Issuer: 4.00% of funds raised Upon successful completion of this funding round a total of 4.00% of capital raised will be paid by the Issuer to Equitise.
  • > Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
    More Info
  • > Related Parties: None

More detailed information about this offer is contained in this Offer Document

Offer Document
Offer overview

 

The Company is offering 666,667 to 4,000,000 ordinary shares under the following terms:

 

 

*Bit Trade has allocated 1,453,901 share options to staff. Please see Section 2.9.2 of the Offer Document for more information.

Executive summary

OVERVIEW

 

Bit Trade is an established digital currency exchange with a dynamic team of entrepreneurs and specialists in financial markets and blockchain technology. We believe blockchain and digital currencies are the future of investment, and our mission is to empower customers by providing them the tools and knowledge to develop and trade these new blockchain based assets.

 

We do this by providing:

 

1. A platform to facilitate the trade of blockchain assets for retail, corporate and institutional customers, and

 

2. A B2B innovation team that provides blockchain technology consultancy and blockchain product design and development.

 

A core part of Bit Trade strategy is to develop bespoke software solutions for institutions to integrate their investment service offerings with the Bit Trade trading platform.

 

INVESTMENT HIGHLIGHTS

 

 

TRACTION TO DATE

 

Bit Trade's volumes from trading activities increased at an exponential rate in the 2018 financial year. This was due to a number of factors including the relaunch of our enhanced platform and introduction of the OTC Trading Desk, but the most significant driver of trading volumes in that period was the overall growth experienced in the digital currency market between the months of November 2017 and January 2018. This is reflected by the growth and decline in aggregate market capitalisation of digital currencies over the same period (see also Section 2.10.5 of the Offer Document for Management Commentary on Financial Performance).

 

*Volume traded refers to the total value of digital currencies traded during the year. This includes buy and sell orders.

Background: digital currency & blockchain

 

Digital Currency is a type of money only available in digital form. A digital currency unit, such as a bitcoin or Ether, is a digital token created from software using an encrypted chain of data blocks on a shared database, known as a blockchain. In the case of Bitcoin, there is a maximum number of tokens that will ever be available, and the record of all tokens currently in circulation is stored and secured using the blockchain. This is essentially a shared record book, commonly referred to as a ledger.

 

 

Unlike a traditional ledger, this is not stored in a central location. Instead, it exists in the form of many thousands of copies stored and secured on home computers and business servers all around the world. This “decentralisation” has one principal benefit: the people and computers relying on this record being correct do not need to put trust in one central party, like a bank, accountant, or government.

Milestones & History

 

Business model

TRADING PLATFORM

 

The Bit Trade platform provides three ways to trade:

  1. A trading portal for individuals and organisations to access and trade online or via mobile with an intuitive interface.

  2. A trading desk for clients who want to trade in larger volumes to secure and settle trades with a personal account manager.

  3. A trading gateway API for business partners to integrate with using software to make use of algorithms to trade automatically.

 

 

All trades flow through the Bit Trade Liquidity Engine - our proprietary multi-exchange price aggregation software that sources liquidity for customers from an array of local and international exchanges, market makers and other counterparties. The engine ensures that trades are executed at an optimal price at high volume and high frequency.

 

B2B INNOVATION TEAM & CONSULTANCY

 

Our innovation team provides blockchain technology consultancy, bespoke product design and offers custom integrations into the Bit Trade platform to institutional customers and business partners. It also acts as an internal incubator for new platform features for Bit Trade.

 

The innovation team has a track record of providing blockchain technology consultancy. We have facilitated workshops and education sessions to several major financial institutions and professional service organisations in Australia and have worked with large and small businesses in an R&D capacity, advising on the use of blockchain technology in their operations.

 

REVENUE MODEL

 

Bit Trade has a clear business model with multiple revenue streams. Our mission is to empower customers by providing them with the tools and knowledge to develop and trade digital currency assets. All features and services developed for the platform are informed by and aligned to this mission.

 

Bit Trade generates revenue from every transaction that is executed on the platform and from its consultancy services. Each platform channel has a specific revenue structure. Typically, trades placed on the trading portal charge a commission of 1%. Spread on trades placed across the platform varies from 0-2% depending on market conditions.

 

Strategy & Vision

 

 

Our primary goal is to increase volume traded through the platform. This will be achieved by focussing on the following objectives:

 

Increase the frequency and size of transactions
We plan to develop and release a suite of features that create a wider range of opportunities for our customers to trade. This roadmap includes:

  • Adding more currencies to the trading portal: Introducing top 10 digital currencies by market capitalisation to our self-service interface.

  • Inter-asset trading: Enabling customers to trade directly between digital assets, such as between bitcoin and ether trading pairs.

  • Adding more payment methods: Introducing additional fiat currency options.

  • Adding token offerings: Providing a method to review and invest in a wide array of token offerings from local and international businesses.

  • Adding order and execution features: Adding a range of additional trading opportunities including limit / stop orders so our clients can manage their trades more actively.

 

Grow our corporate and institutional client base
Our trading desk and development team will focus on creating services and tools that cater to the specific investment and operational needs of corporate and institutional clients. These services and tools will include but are not limited to:

  • Increased availability of the trading desk: Increasing the operating hours for the trading desk.

  • International banking facilities: Providing local bank accounts and account teams to service multiple international locations, starting with New Zealand, the United Kingdom and Canada.

  • Detailed reports: Providing more extensive reports and data export features for all trading channels so businesses can meet their reporting requirements

  • API enhancements and customisation: Continuing to iterate on the features and functionality of our APIs and providing custom integrations for businesses which have specific requirements.

 

Consult and forge strategic partnerships
We will continue to promote the adoption of blockchain technology by deploying our innovation team to consult with and provide bespoke product design and development services to businesses who wish to implement blockchain into their operations. These include but are not limited to:

  • Smart contract engineering

  • Token offering technical and market advisory

  • Stablecoin design, development and implementation

  • Digital asset payments system design and delivery

Through these consultations, we will continue to develop deeper strategic partnerships with businesses who are committed to deploying digital assets on their platforms or to their customers.

Use of funds

 

The table below sets out the intended use of funds raised under this Offer based on the minimum and maximum subscription amounts.

 

Risks facing the business

 

An investment in Bit Trade should be seen as high-risk and speculative. A description of the main risks that may impact our business is below. Below is a description of the main risks facing the Company.

 

For a detailed breakdown of the key risks please see section 2.13 of the Offer Document.

 

Financial summary

 

The following financials are the consolidated accounts of Bit Trade Limited.

For a full breakdown of the financials for Bit Trade please see section 2.10 of the Offer Document.

 

*2018 Income Tax Expense estimate only.  2017 Income Tax Expense includes R&D Rebate. 2018 R&D yet to be lodged and any potential rebate is not included in the above Profit and Loss Statement.

 

*For more information about the Shareholder Loans, please refer to section 2.9.3 of the Offer Document.

Jonathon Desmond Miller

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Josh Graham

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Muneeb Khan

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Robbie Mudrazija

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Sally Elliott

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Geoffrey Tucker

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Manish Ghiya

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Bit Trade Offer Document

This is the Bit Trade Limited CSF Offer Document as at 13 November 2018.

Download

The investors below have committed capital to the business in this funding round.

Ritesh Sunderji Gosar

13-12-2018

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Alex Hardy

06-12-2018

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Charles De Guzman

04-12-2018

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garycoleman

03-12-2018

Miral Sarvaiya

30-11-2018

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Mitchell Cash

30-11-2018

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Kirill Reztsov

28-11-2018

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Crypt

28-11-2018

Akash Goyal

27-11-2018

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Douglas Spiegelhauer

22-11-2018

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Daniel Audsley

22-11-2018

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Billy Pryor

22-11-2018

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Bruce Price

21-11-2018

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Crow

21-11-2018

David Baker

21-11-2018

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Geoff Mason

21-11-2018

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Streets84

21-11-2018

Damon

21-11-2018

Alexander Johnson

21-11-2018

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JKMover

20-11-2018

Simon R Collins

19-11-2018

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Morris Mojmir Mudrazija

19-11-2018

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KAEM

18-11-2018

James d'Apice

16-11-2018

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Geoffrey Tucker

15-11-2018

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Adrian Mudrazija

14-11-2018

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rob molino

14-11-2018

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Si Cheng

14-11-2018

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Peter Miller

14-11-2018

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Kwong Loh

14-11-2018

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Sally Elliott

13-11-2018

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Japtaj

13-11-2018

N.

13-11-2018

m3

13-11-2018

Muneeb Khan

13-11-2018

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Jonny Wilkinson

13-11-2018

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