***** BOOM!!!!!!!!!! *****************************************DGAP-News: Global Blockchain Technologies Corp. Creates Mining Division
DGAP-News: Global Blockchain Technologies Corp. / Key word(s): Miscellaneous
Global Blockchain Technologies Corp. Creates Mining Division
07.11.2017 / 17:31
The issuer is solely responsible for the content of this announcement.
Vancouver, British Columbia--(Newsfile Corp. - November 7, 2017) - GLOBAL BLOCKCHAIN TECHNOLOGIES CORP. (TSXV: BLOC) (FSE: BWSP) (OTC Pink: BLKCF) ('Global Blockchain' or the 'Company') is extremely pleased to announce that its wholly owned subsidiary Global Blockchain Mining Corp. has entered into an agreement to acquire a 49.9% interest in Coinstream Mining Corp., ('Coinstream') the world's first cryptocurrency mining company to employ the streaming model, providing strategic upfront capital and an additional payment upon delivery of the cryptocurrency, to select, proven, best-in-class operators and operations, in exchange for a stream of future cryptocurrency production, at a fixed price.
Coinstream has aggregated 10 megawatts of power in purpose-built data centers located in low power cost jurisdiction (under USD$.04/kWh) Manitoba, Canada.
The initial streaming agreements, once funded, will augment current bitcoin production and provide for the delivery over 5 years of:
a total of 2,500 bitcoins per annum, at a fixed cost of US$1,000 per bitcoin payable at the time of delivery.
In the event that, and at such time as the price of bitcoin trades above $15,000, the fixed cost payment would rise to US$1,500.
In the instance where the network hashrate rises above certain pre-determined levels for a sustained period of time, the fixed cost payment would be adjusted upward.
Over the life of the contracts, the company would receive 12,500 bitcoins, which represents a current undiscounted value of approximately CAD$112,500,000 at the price of bitcoin at the time of this announcement.
In return for these streams, Coinstream will:
provide US$10,000,000 applied to CAPEX related costs to its seasoned industry operating partners, and
be entitled to retain 100% ownership of the underlying mining equipment, until payback of its initial contribution of capital ('Payback Period'), and
retain a 50% ownership of the ongoing value of the equipment, thereafter, and
retain the right to adjust the mix of cryptocurrencies received under the stream to include other major cryptocurrencies.
Coinstream's primary goal with its underlying streaming agreements is to provide non-dilutive capital to existing cryptocurrency miners operating in the most favourable jurisdictions globally, to become the preferred source of capital for miners eager to expand and scale their operations, and in that way to rapidly build a significant critical mass of diversified streams of bitcoin and other bellwether currencies at a fixed price, providing maximum exposure, certainty and upside for investors and shareholders who wish to participate in the rise of this important new asset class.
Shidan Gouran, President of Global Blockchain stated, 'Coinstream is answering the call from those who seek to fully leverage the regularly forecasted potential parabolic price growth of the mainstay cryptocurrencies, from a net long bias, contracted and derisked against the need to maintain operations, and secured by the value of the operating equipment which represents the majority of the CAPEX allocation.'
This strategy also allows Coinstream to scale aggressively with multiple teams in multiple geographies, reducing risk further. The response and inflow of interest in this form of capital has been tremendous. The Company expects this to be the first in a series of streams that its subsidiary Global Blockchain Mining will conclude and encourages other miners globally to reach out at the email address provided below.
Mr. Gouran continued, 'As a new asset class, investors can become concerned about changing operating costs and changes in technology and what that may mean for them. With the streaming model, there is now a readily calculable value for our contracts which can be easily modelled at various prices for bitcoin.'
Chairman Stephen Nerayoff noted, 'While the Company did not originally plan to invest in mining, the establishment of our subsidiary Global Blockchain Mining Corp. to study these opportunities was the result of a concatenation of events that we could not ignore. This new company creates a unique platform through which these opportunities can be pursued in a manner that allows counterparties to maintain control of their operations, formulate their own strategies, and fortify their own positions as members of this important emerging area. It facilitates a lower-cost, less dilutive source of strategic growth capital for them.
For Global Blockchain, the Company is able to access effectively wholesale supply of cryptocurrency from diversified operators and operations and help to create and foster a mutually beneficial way to support our partners as well as industry growth. Global Blockchain's mining subsidiary Global Blockchain Mining Corp will focus on the aggregation of bitcoin and other major currencies, at or near the direct cost of mining, and other than its initial upfront payment, with no ongoing capital costs, allowing shareholders to benefit from strong margin growth in a rising cryptocurrency price environment.'
Spin-Out
The Company believes that its mining subsidiary Global Blockchain Mining Corp., as a pure play cryptocurrency company, the first in the business of cryptocurrency mining, represents an independent highly viable entity on its own with a unique business model differentiated from the other verticals and focuses within Global Blockchain Technologies Corp.
As such the Company is investigating and intends to pursue an arrangement agreement with its newly created, wholly owned subsidiary, Global Blockchain Mining Corp., to carry out a plan of arrangement. Through the arrangement, the Company intends to list Global Blockchain Mining Corp, along with all of its mining streaming interests, as a publicly listed Canadian entity.
Global Blockchain Mining aims to build shareholder value by offering investors cost predictability at a high margin, direct leverage to increasing cryptocurrency prices, additional growth through the accretive acquisition of new streams, and a high-quality, diversified operational base. Global Blockchain Mining represents the next generation of crypto miners.
The completion of the arrangement and the listing of Global Blockchain Mining will be subject to regulatory approval of this transaction, the approval of shareholders, the Supreme Court of British Columbia, and the TSX Venture Exchange.
Team
The Coinstream team consists of the following individuals:
Michael Kahiri, (MBA) Chief Executive Officer
Industrial and management engineer and MBA (Finance) with 10+ year track record in logistics, supply chain and operations management. Michael specializes in digital and online marketing and systems.
Michael is responsible for overall vision and execution including oversight of the team, achieving best-in-class cryptocurrency security, system infrastructure to achieve target KPI's.
Roman Buzaker Chief Operating Officer
Academic background of Electrical Engineering Technology, and Economics and Management, Roman has 14+ years experience as an internet entrepreneur and fluent in English, Hebrew, and Russian.
Roman is responsible for automation, system and energy efficiencies, and scalability for crypto-mining operations.
Igal Sudman, (B.A.) Business Development
Leading business and investment professional in Real Estate, Algorithmic and Quant Trading, emerging industries, and is an active investor and advisor to startups. Igal is fluent in English, Hebrew, and Russian.
Igal is focused on blockchain market research and insights, securing vendor contracts, and building industry partnerships.
Sharon Steiman Chief Technology Officer
Microsoft Certified Solutions Expert with over 13 years-experience in high level technical support, system analysis, system administration, and data center design for large-scale data centers for international organizations, from concept to user implementation. Sharon is fluent in English, Hebrew, and Spanish.
Sharon is responsible for the physical set-up, implementation, and monitoring of the crypto-mining hardware and systems support.
Terms & Closing Conditions
49.9% of the issued and outstanding shares of Coinstream will be acquired by Global Blockchain Mining Corp. in exchange for 3.8 million common shares of Global Blockchain.
The agreement remains subject to various conditions precedent including that Global Blockchain raise not less than US$30,000,000 at which point they would make a commitment to fund US$10,000,000.
Closing of the transaction remains subject to all requisite approvals including TSX Venture Exchange approval.
For more information on the streaming partnerships available through Global Blockchain Mining Corp., please contact streaming@globalblockchain.io.
For more information about Global Blockchain Technologies Corp., please contact info@globalblockchain.io.
About Global Blockchain Technologies Corp.
Global Blockchain Technologies Corp. is an investment company providing investors access to a basket of holdings within the blockchain space, managed by a team of industry pioneers and early adopters of all major cryptocurrencies. GBT is focused on streamlining the current arduous, lengthy and complicated process that interested investors need to undergo in order to gain exposure to the cryptocurrency space with a view to becoming the first vertically integrated originator and manager of top-tier blockchains and digital currencies. GBT is listed on the TSX Venture Exchange and its common shares trade under the ticker symbol 'BLOC.' Other information relating to GBT is available on SEDAR at www.sedar.com as well as on the Company's website atwww.globalblockchain.io.
On behalf of:
GLOBAL BLOCKCHAIN TECHNOLOGIES CORP.
Shidan Gouran
President
AI
