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VANCOUVER, British Columbia, Nov. 30, 2017 (GLOBE NEWSWIRE) -- Block One Capital Inc. (BLOK.V) (the “Company” or “Block One”), is pleased to announce that it has signed a binding term sheet to acquire 90% of the equity of TG12 Ventures Inc. (“TG12”), a private company engaged in cryptocurrency mining. Under the binding term sheet, the Company is to invest up to US$2,300,000 to acquire up to 90% of TG12. The investment is to be made over a 12-month period and will be based on various milestones. The first investment is scheduled to be made immediately, pursuant to which the Company will acquire a 40% interest in TG12 for a US$250,000 investment.
TG12 has entered into a purchase agreement to acquire one-thousand (1,000) S9 Antminer cryptocurrency miners. The S9 Antminers are manufactured by Bitmain, one the world’s most recognized Bitcoin/ cryptocurrency companies. The first batch of S9 Antminers is scheduled to be shipped and delivered in January 2018 and be operable in February 2018. Pursuant to the purchase agreement, the full 1000 units are to be delivered and be operable in February 2018. The S9s are planned to operate at a co-location facility located in Montreal, Quebec Canada, where the all-in cost of operating the miners, inclusive of electricity, rent, cooling, general rig maintenance and management, is estimated to be about US$0.10 per kilowatt hour.
Based on TG12’s financial forecasting, current conservative Bitcoin price estimate of US$8,000 and the 1000 miners being fully operable, the estimated revenue per year is US$7,800,000. As the price of Bitcoin increases, the return on investment of the miners should become even more profitable.
“We have spent the past several months evaluating investments and find the emerging opportunities in the blockchain and cryptocurrency arena to be compelling. With the recent market price of about US$10,000 per Bitcoin, we are excited to be investing in the extremely profitable crypto mining business. While we remain confident of the long-term viability of the business model, we are not solely reliant on Bitcoin – the TG12 mining operation has the flexibility to switch between cryptocurrencies to focus computing resources on emerging and newly profitable coins as they arise,” said Mr. David Berg, CEO of Block One Capital Inc.
For more information on Block One Capital Inc. please visit: www.blockonecap.com.
The Company has granted 500,000 options to consultants, management and directors at $0.70 for 3 years. The options are subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release may contain forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release and has in no way passed upon the merits of the qualifying transaction and has neither approved nor disapproved of the contents of this press release.
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Block One Capital Inc.
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