Gold mining company decides to switch to bitcoin mining

After the announcement its share price rises by 1300%
04 December 2017   722

Recent cryptocurrency hype has influenced a lot of companies all over the world. Now even regular mining companies are betting everything on blockchain and, sometimes, even succeeding.

Natural Resources Holding is an Tel Aviv-based mining company with main investments in land and mineral resources, such as gold and zinc. Their shares are publicly traded on Tel Aviv stock exchange and company is quite well-off. Now it seems, that the company has plans to broaden its scope by mining not only gold.

This announcement about supposed focus change galvanized the Israeli investors, making Natural Resource Holding one of the ten most traded by volume on Tel Aviv Stock Exchange. NRH share price has gone up by 1300%.

Right now NRH is negotiating to buy 75% of Canadian BACKBONE Hosting Solutions in exchange for 75% of their own shares. The Canadian company currently has four operational farms in Quebec, with two more to come online in 2018. BACKBONE claims to provide eco-friendly and cost-effective mining solutions for cryptocurrency mining by placing their hardware in northern regions, where cooling isn't a concern for better part of the year, and getting power from the local hydro-electrical power plant.

Largest mining farm to be built in the UK

The well-known UK tech company Bladetec is building the first large Bitcoin mining farm in Europe
20 March 2018   165

Bladetec had already got an experience in IT support for NATO and the Ministry of Defence of the UK in the past. Today its idea is funded by investors in a limited company which is protected by UK law.

The facility - Third Bladetec Bitcoin Mining Company (TBBMC), situated on the Southeast of the country, is going to cover 3,500 square feet in three different places: in London, Suffolk and Surrey.

Today the company is raising £10 million from investors for building and operating the farm for up 2 years. The farm will become global and significant, also it is supposed to be introduced in the world`s top 25 and produce considerable return for shareholders (as a result of its dominant position).

The minimum investment to TBBMC project set by the company is £ 5,000 from each applicant. The project allows the capital growth up to even 45 % within a period of 2-3 years. The returns for the shareholders at that stage would be based on the Bitcoins sales`proceeds and the ASIC machines. If the price of Bitcoin does drop by 40 %, an investor may lose 22 % of his capital.

The company declared that it is going to mine 1,280 bitcoins within a period of two years. Nowadays it's difficult to predict how much those Bitcoins may be worth in two years. According to current prices, they will be valued at £ 7,8 million. But the situation may probably change before 2021. As for the raised funds, they would mostly be spent on the energy costs, despite the low energy bills' agreement between Bladetec company and the intended wind farm.

Bitcoin mining is more popular in the countries where the weather is cold (such as Iceland and China). The government of Iceland can implement a tax on mining because of the energy consumption. Chinese authorities insists on the ending of the cryptocurrency trading and mining in the country.