Block One Capital Provides Update on the Bitcoin Mining Sector
06 September 2018 - 9:05AM
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED
STATES
Block One Capital Inc. (TSXV: BLOK, OTCQB: BKPPF, Frankfurt: ES3)
(the "
Company" or "
Block One
Capital"), an investment company focused on high growth
opportunities in the blockchain sector, is pleased to announce that
its Chief Technology Officer, Dr. Pratheev Sreetharan (PhD Harvard
University), and Director of Research, Dr. Sivakumar Arumugam (PhD
Columbia University), have published a revealing analysis of the
bitcoin mining sector utilizing publicly available global hash rate
information.
Their research paper highlights the following
realities of Bitcoin mining (The research paper can be found on
Block One Capital’s website at www.blockonecap.com):
1) As more and more new Bitcoin miners come on line, the rapid
rise in global hash rate rates is leading to a rapid fall in the
number of expected Bitcoins to mined by mining hardware.
2) Profitability of mining machines is falling quickly over
time.
3) At an exchange rate of $10,000 per Bitcoin, a miner operating
with an average cost structure will be unable to achieve profitably
within a few months.
4) Mining hardware is most profitable in its first days of
operations.
5) Delays in the deployment of mining equipment has a huge
impact on revenue generation.
6) Investing in new mining equipment currently will likely not
produce very good future returns.
Dr. Sivakumar Arumugam concluded, “The striking
divergence between the global hash rate and Bitcoin prices suggests
that mining is becoming increasingly unprofitable.”
The review of publicly available data reveals
that the global hash rate has been increasing at a steady
exponential rate in recent months. As adjustments to the hash rate
may take several more months to work themselves out, Dr. Arumugam
added that “Purchasing new equipment now is unlikely to give a
positive rate of return.”
“I am grateful to have had the guidance of a
strong research team in our decision-making process over the last
couple of months,” said Sothi Thillairajah, CEO of Block One
Capital. “The conclusions of the study support our early decision
to exit the Bitcoin mining business.”
About Block One Capital
Inc.
Block One Capital. is an investment company
focused on early stage and high growth opportunities in the
blockchain sector. Block One Capital is a listed investment issuer
on the TSX Venture Exchange: BLOK. Block One Capital seeks to
invest in early stage blockchain technologies at attractive
valuations. Block One Capital seeks to access attractive pre-token
issuance blockchain equity investments for its investors. Block One
Capital seeks to acquire a significant minority stake when
possible. Utilizing our accomplished management, director, and
advisory team, Block One Capital seeks to provide investors with a
diversified basket of blockchain exposure.
For more information on Block One Capital,
please visit the Company's website at www.blockonecap.com.
"Sothi Thillairajah"Chief Executive Officer
Forward-Looking Statements
This news release contains 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, including with respect to Block One Capital's
investment focus, the Company's expectations and estimates
regarding the profitability of Bitcoin mining, including expected
global hashrate and Bitcoin prices, and the Company's plans to exit
the Bitcoin mining business. Although Block One Capital believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such 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. Factors that could cause actual
results to differ materially from those in forward-looking
statements include general economic, market or business conditions,
including the general acceptability of blockchain, risks associated
with regulatory changes and the retail sector generally,
availability of personnel, materials and equipment on a timely
basis, accidents or equipment breakdowns, uninsured risks and
receipt of necessary TSX Venture Exchange approvals. These
forward-looking 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.
FOR ADDITIONAL INFORMATION CONTACT:
Block One Capital Inc.
Office: 604-398-4485;
email: info@blockonecap.com
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