Link Global Tech (CSE: LNK) this morning announced that it has enter into an arrangement for the mining of bitcoin. The arrangement, referred to as a power and royalty mining agreement, will see the company utilize over 50 petahash of bitcoin mining capacity.
Under the terms of the arrangement, the company will generate revenues two ways. First, it will manage the machines used to mine roughly 0.35 bitcoin per day through a total mining capacity of 50 petahash, for which it will receive a royalty on a bi-weekly basis.
Second, the company will also charge a base rate for the power utilized in the mining of bitcoin, effectively covering the cost of mining for the firm. This method is expected to provide stable revenue for the firm from the power charges, while providing immediate revenue from the bitcoin royalty.
The arrangement is to take effect February 21, 2021.
Additionally, the company this morning also announced that it is conducting a private placement for gross proceeds of $640,000. Units under the offering will be priced at $0.60, and contain one common share and one half of a common share purchase warrant. Each warrant is valid for nineteen months from the date of issue, with an exercise price of $0.90 per share.
Proceeds from the financing are to be used for marketing and general working capital, as well as the commissioning of a new 10 megawatt power site in Alberta.
Link Global Tech last traded at $0.89 on the CSE.
Information for this briefing was found via Sedar and Link Global Tech. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
