With %Cryptocurrencies heating back up thanks in part to debt concerns across major world economies, crypto miners are cashing in on the asset class in big numbers. Just today, news hit that crypto miner, %CryptoBloxTechnologies Inc. (CSE: $BLOX) entered into an arm’s length asset purchase agreement with 1001038815 Ontario Inc. to purchase five (5) IceRiver KS3 Kaspa mining units.
Completion of the Agreement is conditional upon, among other things, approval of the Canadian Securities Exchange and the Company and the Vendor entering into a management services agreement (“MSA”), the form of which has been settled, to provide for the set up and ongoing maintenance, hosting and operation of the Miners by the Vendor.
The MSA provides for competitive electricity rate of USD $0.041 per kilowatt-hour, which is expected to allow for efficient mining of Kaspa with low overhead costs. The total consideration under the Agreement for the Miners and the MSA is 11,000,000 common shares of the Company, having a deemed value of $1,100,000.
By acquiring and deploying the Miners, CryptoBlox hopes to expand its digital asset mining operations beyond %Bitcoin (CRYPTO: $BTC), leveraging Kaspa’s distinctive blockDAG technology.
Speaking on the Kaspa miner’s acquisitions, Akshay Sood, CEO of CryptoBlox, stated “This is a significant achievement for the Company, given we will acquire a turnkey operation, which is expected to immediately generate cash flows, while preserving cash.”
Investors are applauding this announcement with the stock (BLOX) currently up over 10% at $0.155 in mid-morning trading.