Valereum plc (AQSE: VLRM), a firm that is in the process of acquiring the Gibraltar Stock Exchange (GSX), has announced that it will sell its Bitcoin mining assets to Vinanz Ltd. in exchange for shares of the firm amount to around 24% ownership. The deal is contingent upon Vinanz gaining a listing on a “recognized stock exchange.”
Valereum states that the final holding will depend on the amount of the capital raised as part of the listing and it will have no management representation on the Vinanz board.
According to the company, Valereum purchased 20 BTC miners in the USA with a combined computational processing power of 1,600 TH/s (trillion hashes per second). Valereum’s wallet is said to currently holds approximately 4.15 Bitcoin.
The deal is being described as a “strategic reorganisation” as it focuses on the Gibraltar Stock Exchange acquisition as well as the forthcoming launch of its NFT project.
Vinanz Ltd is run by David Lenigas and Jeremy Edelman. Vinanz is expected to build out Bitcoin mining, initially focusing on installing clusters of BTC miners in multiple facilities throughout the US and Canada.
Richard Poulden, Chairman of Valereum, issued the following statement:
“The final Bitcoin is expected to be mined in approximately 2140 but the supply will steadily be constricted as we approach that date. Estimates of the final value of Bitcoin as this date approaches are as high as $150,000 per coin and we remain convinced that this is a valuable and substantial play on cryptocurrency in general.”
Lenigas, Chairman of Vinanz added:
“The acquisition of Valereum’s BTC miners means that Vinanz will start life as an operating company with miners and BTC in its wallet. Our job at Vinanz will be to try and grow the number of miners and the size of our wallet as quickly as possible. The volatile Bitcoin price has taken a bit of a price hit in recent times, but the board of Vinanz sees this as a great time to grow a substantial BTC business. We also see the leverage to the BTC price over the coming years as tremendous and the quicker we can get new miners installed – the better. Valereum will be a great substantial shareholder as they truly recognise the growth potential of the overall crypto and NFT markets as more of the world’s leading financial institutions weigh into this new financial sector.”
Valereum’s current market cap is around £17 million.