LUXXFOLIO Holdings Inc. announced that its wholly-owned subsidiary, Westblock Capital Inc. has entered into an asset purchase agreement with Blackcloud Crypto Investments to purchase the assets of its Ethereum Mining and Hosting Operations. Thus, LUXXFOLIO diversifies into Ethereum.
LUXXFOLIO is issuing 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 best and be released 4 months after closing.
The acquired assets will 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.