A digital credit card issuer that was widely praised by investors has been closed after a loss of customers and a failure to make good on promises.
The National Association of Consumer Credit Unions announced on Tuesday that it had sold its stake in Digital Thermostat Inc. for $5.4 million to the digital utility company First Choice.
The NACCU, which is a trade association representing credit unions, said the purchase of First Choice would allow it to take control of the business.
It said the sale would help to stabilize the company and improve the value of its holdings.
Digital Thermostats shares were trading around $8.60 by mid-afternoon.
The stock was up $1.8 on Wednesday.
Digital thermostats use a temperature sensor to help consumers keep their homes and businesses cool and safe.
It’s an increasingly popular technology in home appliances and other devices.
It was invented by German electronics company Intel in 1979.