Company establishes bit mining infrastructure for long term revenue generation
VANCOUVER, BC, CANADA (January 15th, 2021) – Codebase Ventures Inc. ("Codebase" or the "Company") (CSE: CODE - FSE: C5B – OTCQB: BKLLF) is pleased to announce that it has signed a $2.5 million (USD) definitive agreement as of January 14th, 2021, to acquire bit mining infrastructure based in the USA for long term revenue generation.
“Cryptocurrencies, including Bitcoin, have risen sharply in the last few months, and Codebase believes there is still long-term potential, as evidenced through recent brokerage analyst coverage1, and mainstream investments2,” said Codebase President Mr. George Tsafalas.
Codebase’s investment will deliver a first phase of 9,450 Petahash per second worth of mining rigs fully hosted in the USA. The Company has the option for a second tranche of an equal number of mining rigs for a period of one year.
This arms-length agreement calls for an initial cash payment of US$ 500,000 and the issuance of 7,000,000 common shares issued at a deemed price of $0.25 per share. All shares issued will be subject to a 4 month statutory hold period. As part of the transaction, the vendor will provide hosting and management services at an all-in price of US$0.075 per kilowatt hour for a period of 2 years.
If the Company exercises its option to acquire a second tranche, the a similar number of mining rigs will cost US $ 500,000 and US $750,000 to be paid by way of shares issued at the then current market price.
The Company’s primary blockchain interest is in Arcology, a cluster-computing powered AI blockchain ecosystem with unlimited scalability. Arcology is progressing toward its second Testnet and the release of its software development kit as previously announced. Code currently holds a 30% interest in the private company that is developing Arcology, with an option to increase its interest to 51%.
As previously announced, Code is complementing its Arcology investment and expanding its interests more widely in the blockchain sphere through this bit mining investment, and will consider future additional blockchain investments as the price of bitcoin and other cryptocurrencies continue to rise and overall adoption of cryptocurrencies continues to expand.