Cryptoblox Technologies to buy five Kaspa mining units
Cryptoblox Technologies Inc. entered into an arm's-length asset purchase agreement with 1001038815 Ontario Inc. on Oct. 30, 2024, to purchase five IceRiver KS3 Kaspa mining units. Completion of the agreement is conditional upon, among other things, approval of the Canadian Securities Exchange and the company and the vendor entering into a management services agreement, the form of which has been settled, to provide for the set-up and continuing maintenance, hosting and operation of the miners by the vendor.
The MSA provides for competitive electricity rate of 4.1 U.S. cents per kilowatt-hour, which is expected to allow for efficient mining of Kaspa with low overhead costs. The total consideration under the agreement for the miners and the MSA is 11 million common shares of the company, having a deemed value of $1.1-million. A finder's fee of 550,000 common shares will be payable upon closing.
By acquiring and deploying the miners, Cryptoblox hopes expand its digital asset mining operations beyond bitcoin, leveraging Kaspa's distinctive blockDAG technology. Kaspa's technology enables rapid transaction confirmation and high throughput, which makes it an attractive option for miners.
The company also announces that it has granted five million restricted share units (RSUs) to key management and consultants, to reward such individuals' continuing commitment to the company. Such RSUs will vest as follows: 25 per cent after four months, 25 per cent after eight months, 25 per cent after 12 months and 25 per cent after 16 months from the date of grant. The grant of two million of the RSUs to a director and officer of the company was considered a related-party transaction under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions), but was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, given neither the fair market value of the securities issued nor the consideration provided therefor exceeded 25 per cent of the company's market capitalization.
Akshay Sood, chief executive officer of Cryptoblox, commented:
"We are thrilled to enter the Kaspa mining market, as this represents an important step in our commitment to diversification.
"This is a significant achievement for the company, given we will acquire a turn key operation, which is expected to immediately generate cash flows, while preserving cash."
"We hope to rapidly continue to build out our diversified blockchain ecosystem and continue to build value for our shareholders."
About Cryptoblox Technologies Inc.
Cryptoblox Technologies is a blockchain technology infrastructure company focusing on building out its diversified blockchain ecosystem strategy that consists of digital asset mining and infrastructure, mining products and technology, and structured blockchain products and services.
