Blockchain Mining Completes Bitfarms Merger, Stock Jumps 49%
Israeli equity investors seem to maintain a strong appetite for exposure to the bitcoin ecosystem. The value of a public company traded on the TASE has increased by almost half after it officially completed a deal with Canadian miner Bitfarms.
Bitfarms Merger Complete
Tel Aviv Stock Exchange listed company Blockchain Mining Ltd. (TASE:BLCM) has announced on Sunday it completed that the merger with Canada’s Backbone Hosting Solutions Inc., operating under the commercial brand Bitfarms. Its share price has jumped up by 49% at the end of the trading day in response.
Bitfarms mines bitcoin, bitcoin cash, ethereum, litecoin and dash in four different facilities in Quebec which have 27.5 MW of installed capacity and over 200 Ph/s of installed hash-power. The company’s construction pipeline includes an additional three farms with over 100 MW of power capacity. It is said to have been self-funded since its establishment in 2013 and has over 200 shareholders.
“With hydroelectric power, cold weather, competitive electricity rates and innovative universities, the province of Quebec in Canada is rapidly advancing to the status of a global center for blockchain infrastructure,” commented Bitfarms. “The deal confirms our position as a leader in the blockchain technology industry. We are ready to implement our expansion in Canada,” said Emiliano Grozky, corporate vice president of strategy.
Blockchain Mining Ltd. only announced in late 2017 it will be merging with Bitfarms. Prior to this announcement the company was known as Natural Resource Holdings and its investments were mostly in land and mineral assets of gold, silver, zinc, and lead deposits. Its stock price jumped 1,300% after it announced the company was refocusing on bitcoin, but has since dropped back down considerably.
Earlier this year Bitfarms signed a deal with two Canadian investment banks, GMP Securities L.P. and Powerone Capital Markets Limited, for the offering of up to CAD$50,000,000 (about $39 million USD) in debentures. This debt is meant to finance an expansion of the company’s cryptocurrency mining business following the merger.
“In the last 56 days of 2017, our operations generated more than $200,000 in daily revenue,” said Wes Polford, CEO of Bitfarms. Since then we have increased our installed capacity, and we are witnessing more and more opportunities for growth and integration every day.”
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