The Australian ATM company planning to offer Bitcoin is in administration

Paying by Bitcoin. Cameron Spencer/Getty Images

ATM operator Stargroup, which had plans to convert its some of its machines to digital currency Bitcoin, is trading as normal despite going into administration.

This week Richard Tucker and John Bumbak of insolvency experts KordaMentha Restructuring were appointed as receivers and managers.

The company’s latest annual report showed debt of $9.1 million.

Today Goldfields Money Limited, which provides the cash for Stargroup’s network of automatic teller machines, said it’s owed $526,000 in fees.

The company says it has about $6.5 million in the network.

“Cash deployed by Goldfields Money under the terms of the existing bailment funding agreement with Stargroup is and remains the property of Goldfields Money,” the company says.

The receivers and managers are seeking expressions of interest to sell or recapitalise the business.

“The Receivers and Managers advise that they intend to trade the business on a business as usual strategy,” they said.

In Australia, Stargroup has 500 of its own ATMs and manages another 2,400.

CEO Todd Zani told news service Stockhead the major banks removing ATM fees was not the cause of the debt issue.

The company in September announced a joint venture with DigitalX, a blockchain technology and advisory company, to convert ATMs to trade the digital currency Bitcoin.

Currently there are fewer than 20 ATMs in Australia which can process a Bitcoin transaction with conversion fees between 4% and 8% of the transaction value.

In 2017, Stargroup posted a 128.4% rise in full year revenue to $8.36 million. Profit more than tripled to $1.94 million.

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