Locate Technologies Exits Bitcoin Investment, Shifts Focus
Locate Technologies has sold all its Bitcoin holdings, reallocating capital to focus on core business operations.
Locate Technologies, a company listed on the NZX specializing in last-mile logistics software, has divested its complete holding of 12.3 Bitcoins. This decision comes after the company adopted Bitcoin as its primary treasury reserve less than a year ago.
Sale Details
The liquidation was executed after market hours on October 30, generating approximately A$1.37 million, which is equivalent to around NZ$1.72 million. Currently, Locate holds the proceeds in Australian dollars and confirms that it possesses no Bitcoin or other digital assets.
Reasons Behind the Decision
Initially, Locate Technologies became a pioneer on the NZX when it adopted Bitcoin in December 2025, aiming to harness the potential of cryptocurrency as a treasury asset. However, in light of evolving security concerns related to digital currencies, the board has expressed a shift in strategy.
The increasing vulnerabilities associated with cryptographic assets, particularly in relation to advancements in artificial intelligence and the looming threat of quantum computing, have influenced this decision. While the board acknowledges Bitcoin's long-term potential, they opted for a more cautious approach regarding their financial strategies.
Strengthening Core Operations
Despite the exit from cryptocurrency investing, Locate Technologies recently reported its first quarterly net profit as a publicly listed company for the financial year 2027. For the three-month period ending September 30, the company announced an unaudited net profit after tax of NZ$62,000.
With a notable year-over-year revenue increase of 36%, totaling NZ$2.22 million, the company has demonstrated strong growth, bolstered by its Locate2u last-mile delivery platform. This segment saw a record revenue spike of 72%, amounting to NZ$1.5 million, effectively constituting 67% of the overall revenue.
By eliminating the risks associated with digital assets, the management team believes they can better concentrate on enhancing the core business operations. The proceeds from the Bitcoin sale are to be retained in cash while the board weighs options for their effective deployment.
Future Considerations
Despite recent actions, Locate Technologies has not ruled out the possibility of reintroducing Bitcoin into its financial strategy in the future. The board's commitment to monitoring the cryptocurrency landscape remains intact, with an eye on potential opportunities that align with their business objectives.