Acquisition Adds 6 PH/s BTC Equivalent Hash Rate
VANCOUVER, BC, Sept. 7, 2021 /CNW/ – LUXXFOLIO Holdings Inc. (the “Company” or “LUXXFOLIO”) (CSE: LUXX) (OTCQB: LUXFF) is pleased to announce its wholly-owned subsidiary, Westblock Capital Inc. (“Westblock” or “LUXX Mining Division”), has entered into an asset purchase agreement (“Purchase Agreement”) with Blackcloud Crypto Investments (the “Seller” or “Blackcloud”) to purchase the assets of its Ethereum Mining and Hosting Operations (the “Transaction”). Blackcloud is a cryptocurrency mining venture based in Lethbridge, Alberta that focuses on Ethereum mining.
In consideration for the Transaction, LUXXFOLIO will issue 711,300 common shares of LUXXFOLIO to the Seller, adjusted for the value of the Ethereum crypto currency coins included in the Transaction on closing. Shares issued for this Transaction will vest and be released 4 months after closing.
The Assets shall include the Seller’s Hosting Portable Container, 136 Ethereum mining machines (“Ether Miners”), 25 Ethereum crypto currency coins, and all agreements related to the mining and hosting of the Seller’s Ethereum mining operations.
Based on current mining economics, these Ether Miners will contribute approximately 30 GH/s, or approximately 17.5 Ethereum per month based on current difficulty rates (6 PH/s of BTC Equivalent Hash Rate). The Ether Miners consist of 8 AMD Radeon RX570 GPUs to deliver a highly efficient ETH hash rate of 220 MH/s (±5%) while maintaining lower power consumption. The total power usage is approximately 217 KW.
“We are exploring a number of diversification efforts and mining Ethereum is a natural fit into our operations. We also see staking and proof of work as complimentary to our mission. We will continue to explore integrating other mining operations as the industry continues to consolidate”, commented Ken MacLean, President of LUXX Mining Division.
Commenting on the transaction, Blackcloud Crypto Investments stated, “There is tremendous upside in LUXXFOLIO and we look forward to participating in the company’s growth”.
The closing of the Transaction is subject to certain condition precedents, which include Westblock receiving any necessary regulatory approvals.
Recent Company Highlights
LUXXFOLIO began its active mining operation as announced on (NR July 28, 2021);
The Company announced on NR September 2, 2021, that it has installed 690 bitcoin miners operating at approximately 50 PH/s and expected to achieve in excess of 60 PH/s once fully optimized;
With the addition of another 2,400 Bitmain S19j Pro bitcoin miners previously announced (NR May 27, 2021, LUXXFOLIO is now targeting Bitcoin production to be approximately 310 PH/s by Q3 2022 based on current miners on order;
Construction is beginning on the expansion of the mining facility, which will increase power capacity to an estimated 15 MW and which the Company anticipates will provide LUXXFOLIO with the ability to push computing hash rates to more than 400 PH/s based on current technology and miner availability; and
The Company recently up-listed in the US to the OTCQB under the symbol LUXFF (NR May 19, 2021).
Estimated Calendar Miner Delivery Dates
Q3 2021: 300 Miners
Q4 2021: 600 Miners
Q1 2022: 600 Miners
Q2 2022: 600 Miners
Q3 2022: 300 Miners
LUXXFOLIO Holdings Inc. is a CSE listed, vertically integrated digital asset company based in Canada. We operate an industrial scale cryptocurrency mining facility in the United States powered primarily by renewable energy with a focus on Bitcoin mining and generating digital assets on the blockchain ecosystem. LUXXFOLIO provides investors with a liquid alternative for exposure to digital assets like Bitcoin via the traditional capital markets.
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Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans to” “estimated”, “anticipated”, “will be”, or variations of such words and phrases or statements that certain actions, events, or results “will” occur. Forward-looking statements regarding the Company, its hosting operations, miners, and the Company’s development of its growth strategy are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its subsidiary to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Luxxfolio Holdings Inc.
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