Global Blockchain Technologies Corp. is pleased to report that it has completed its previously announced acquisition of Coinstream Mining Corp. by way of three-corner amalgamation. Under the terms of the definitive acquisition agreement, GBT will acquire 100% of Coinstream and assume all of its existing assets and underlying agreements at present, including:
- The Manitoba joint venture facilities totaling 50 MW of capacity, with 35 MW of capacity available immediately. GBT’s subsidiary, Global Blockchain Technologies Corp., will supply cryptocurrency mining units on the basis of a 70/30 split in favour of GBT.
- The wholly-owned Mozambique facility totaling 25 MW of capacity, with 10 MW of capacity available immediately. The Mozambique facility will host GBT machines and/or seek joint ventures for the rapid procurement of cryptocurrency miners. These facilities have an average power cost of USD$.03 per KwH.
- A 25% interest in Distributed Mining Inc. (“Distributed Mining”). Distributed Mining is a blockchain software company creating software that enables all devices to have the ability to participate in mining cryptocurrency. The software will be available to be downloaded through Distributed Mining, or through its partner sites. Connected devices will then be able to activate mining operations through their devices (including but not limited to mobile phones and gaming consoles).
Distributed Mining would allow anyone with a connected device to download and install a software packet, giving the user access to optimized cryptocurrency mining. The distributed mining platform will be able to optimize for variable mining requirements, and its design is particularly well suited for gaming consoles, of which there are over 100 million currently connected units. Gaming consoles contain stronger processing power than that found in typical laptop/desktop computers, making them the perfect environment to deploy the distributed mining platform as individuals are able to put their resting consoles to work, earning them valuable cryptocurrency tokens.
Both the Manitoba and Mozambique facilities are managed by personnel who are seasoned in the operation of cryptocurrencies, providing a turnkey and lean solution to GBT.
Spinout of Global Blockchain Mining as stand-alone publicly listed entity
The Company is pursuing a plan of arrangement to liberate the value in its mining division. Through the arrangement, the Company intends to list Global Blockchain Mining, along with all of its mining interests, as a publicly listed Canadian entity.
The spinout will be on a one-for-one basis with every share held of GBT entitling the holder to one share of Global Blockchain Mining.
The Company has set the annual general and special meeting for April 10, 2018. All shareholders as of the record date, March 1, 2018, will be entitled to vote at the meeting, as well as to the spinout share.
The spinout entity is anticipated to have combined access to 175 MW of low-cost, reliable power in Montana, Manitoba, and Mozambique and currently has 6,666 AntMiner S9s which are expected to be fully operational by mid-April. The spinout will also hold 25% of Distributed Mining.
GBT will satisfy the acquisition of Coinstream by the issuance of 32.5 million common shares of Global Blockchain Technologies.
The completion of the arrangement and the listing of Global Blockchain Mining will be subject to regulatory approval of this transaction, the approval of shareholders, the Supreme Court of British Columbia and the Canadian Securities Exchange, which is not guaranteed.