LONDON (Alliance News) – Shares in Clear Leisure PLC rocketed Wednesday after the company said it will invest in a data centre to mine crypto-currency Bitcoin.
Clear Leisure shares more were up 96% at 1.20 pence per share in afternoon trade following the news.
The investment company said it will acquire 50% interest in UK registered bitcoin miner Miner One Ltd by providing EUR200,000 towards the development of the data center, which will be located in a undisclosed European country due to lower electricity costs. The projected total capital cost of the data centre is estimated at EUR400,000.
Clear Leisure intends to invest in the bitcoin miner via a newly established subsidiary. The new unit will also include the company’s 4.5% interest in 3D mapping company Geosim Systems Ltd and will seek to add other technology businesses into its portfolio followed by a potential stock listing.
The company’s stake in Geosim was valued at GBP634,000 as at December 31, 2016. Clear Leisure has entered into a agreement with 64Bit Ltd, a Malta-based bitcoin miner, for developing the new European bitcoin mining centre.
Under the agreement, 64Bit will also receive additional 15% share of bitcoins annually extracted in return for managing the data centre. The companies estimate an extraction rate of about 20 bitcoins per year at a cash break-even production cost of USD4,752 per bitcoin compared to the current bitcoin price of around USD15,500.
Clear Leisure’s largest shareholder Eufingest SA has loaned the company EUR200,000 for the bitcoin mining data centre. Clear Leisure is also investigating other funding sources including Eufingest?s direct participation, as well as third parties, with whom the company is already in discussion.
The Eufingest loan is secured with against the new subsidiary and is repayable within 24 months from the date of drawdown and carries an annual interest of 2.5%.
“We believe that the combination of cheap energy, available nowadays in certain European countries, combined with the software optimisation skills provided by 64Bit Limited, we can create a competitive edge to better exploit specialised Bitcoin mining and more in general the strategic blockchain technology, of which crypto currencies is one of the many applications,” Clear Leisure CEO and Chairman Francesco Gardin said.
By Tapan Panchal; [email protected]
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