Under the sales agreement, Kogan will receive $1.5 million in cash and a warrant entitling the company to approximately CA$2.8 million in either equity in First Ledger or cash upon exercise of the warrant, which will occur within a year of the domain name being transferred to First Ledger. Kogan owns and manages a portfolio of domain names, including bitbuy.com.
In addition, Kogan and Bitbuy have entered into an advertising agreement where the former company will provide marketing and advertising services to support the latter’s future launch into the Australian market.
“The domain sale not only delivers returns for Kogan shareholders but also provides an opportunity to benefit from Bitbuy’s future success in the crypto business abroad and potentially in the Australian market,” Kogan executive director David Shafer said.
“With a Kogan.com partnership in place, we are confident of a successful expansion of Bitbuy into Australia,” Bitbuy COO Jordan Anderson said.
Just recently, Bitbuy became the first approved marketplace and dealer of crypto assets in Canada.
For its 2021 financial year results, Kogan reported its net profit after tax whittled down to AU$3.5 million, marking an 86% decline compared to its AU$26.8 million performance last year.
The nosedive in profit was due to higher freight and inventory costs, with both amounting to almost AU$69 million and AU$35 million, respectively. By comparison, these expenses were more than double those incurred during FY20.
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Revenue-wise, Kogan continued to see increases during FY21 by earning just over AU$780 million in total revenue. In FY20, Kogan had AU$498 million in total revenue.
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- Cryptocurrency exchange Bitbuy buys Kogan’s domain name
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