Global Blockchain Technologies Corp announced that the company's subsidiary, Global Blockchain Mining Corp., has received regulatory approval to complete the purchase of its previously announced acquisition of 6,666 Antminer S9s from Bitmain Technologies Limited, a privately-owned multinational semiconductor company headquartered in Beijing, China, for a total purchase price of US$20,000,000. The estimated delivery of these units is March 2018.
Shidan Gouran, President of GBT stated, "We are extremely excited to move forward with our investment in this equipment, which is recognized as the pre-eminent bitcoin mining machine currently on the market. The Company feels that our acquisition of this mining equipment will provide a variety of options to continue to pursue our investment strategy within the sector. We are currently reviewing a number of opportunities that will allow us to monetize on our investment in a rapid manner."
The company is acquiring the equipment for investment purposes and will not be undertaking any direct cryptocurrency mining operations. Further to the company's news release dated December 12, 2017, Coinstream Mining Corp. has agreed to accept a number of Antminers, to be negotiated in the definitive agreement between the parties, in satisfaction of the Company's US $10 million investment commitment. Cryptoba Corp. has also agreed to accept such equipment in satisfaction of Coinstream's US $10 million investment commitment pursuant to their proposed streaming agreement with Coinstream. Both transactions remain subject to the negotiation and execution of definitive agreements.
Shidan Gouran, President of GBT added, "Our acquisition of Coinstream was done with the primary objective of getting a hold of distributed mining technologies, in anticipation of the inevitable increased difficulty of mining cryptocurrencies, which will make streaming a more difficult strategy to use for cryptocurrencies. Why is this the case? Streaming is a common funding strategy in the commodities industry, where an investor will provide a fixed sum to a commodity provider, in exchange for a supply of units at a fixed price, irrespective of fluctuations or market price changes. This strategy is easy to utilize in the case of commodities such as gold or energy, as they will not necessarily become more difficult to procure. However, cryptocurrencies, by design, are meant to become more difficult to mine over the course of time. As in, it is programmed for this to happen.
Through Coinstream, we will create partnerships with numerous technology vendors to harness the computing power of various devices that use computers (such as refrigerators, gaming consoles, and HVAC systems). By having access to a distributed network of computing power, we are effectively without limits in terms of accessing the computing power that we will need both today and tomorrow to effectively and sustainably mine cryptocurrencies. This will facilitate mutually profitable streaming deals, and cause our mining division to be the market leader in offering this financial instrument.”