After a year of mumbly news releases that didn’t reveal as much news as they hinted at, Calyx Bio-Ventures (CYX.V) has finally dropped one that details a deal.
And it’s a decent one.
Calyx Bio-Ventures Inc.’s wholly owned subsidiary Canada Blockchain Hosting Corp., a Vancouver-based blockchain computing company, has acquired and successfully completed the installation and setup of its first cryptocurrency-mining and blockchain-data-validation operation in Kamloops, B.C.
This is the second phase of the company’s objective to integrate a general cryptocurrency-mining facility and distributed-computing platform into the company’s existing blockchain business model. This additional computing and hash power will allow Canada Blockchain to immediately generate additional revenues and significantly enhance the company’s ability to support the expansion of its private blockchain ecosystem.
Yes, we have details. They’ve snapped up 350 GPUs. Not a gamechanger, but a nice little earner, enough to cover the company’s expenses, and, more importantly, a sandbox from which to execute their blockchain strategy.
The acquisition brings 50 high-performance mining units, each with seven graphics processing units, under Canada Blockchain’s ownership (with rights to acquire another 40 units immediately), which allows for quick expansion and buildout without waiting for new hardware from suppliers. The flexibility of GPU mining versus Asic based mining allows Canada Blockchain to participate in mining pools which maximizes profitability regardless of the cryptocurrency being mined. All mining proceeds will be paid out in either bitcoin or ethereum, depending on profitability at the time.
What are they mining?
This array of units is currently mining bitcoin, ethereum, Decred, Lbry, Zcash, and Pascal, and will expand to cover any other cryptocurrency that may be profitable in the near term. A number of these currencies have seen significant appreciation in the last year.
A decent spread. And this is the first nibble, with more already being put together.
The next phase of the company’s cryptocurrency strategy is being built out in its new office headquarters, where the company is installing a 1,000-square-foot datacentre space to accommodate approximately 100 13-GPU mining units, with a view to expanding that to a 7,500 square feet upon completion of negotiations with facility owners.
The stock has already climbed by a third, though it continues to be one of the cheaper entries into the blockchain/crypto space.
I spoke to Roger Forde, CEO of Calyx, this morning and he said he’s neck deep in negotiations for both the second half of the facility they just bought, and the expansion of his office-based set-up which, according to him, has a nice deal on energy costs that will make urban crypto mining comparable to facilities in subsidized energy regions.
Again, this is a small set-up right now, no doubt. But it’s an active setup that is earning money today, not an ‘early 2018’ launch that will rely on hardware acquisition (that is becoming really difficult) and future buildouts that will require big financing.
Solid move. Nice uptick. Well played.
UPDATE: By the end of trading, CYX was up 100% to $0.36.
— Chris Parry
FULL DISCLOSURE: Calyx Bio-Ventures is an Equity.Guru marketing client
NB: Pursuant to a resolution passed by the directors dated Nov. 27, 2017, Calyx Bio-Ventures Inc. changed its name to Calyx Ventures Inc. effective as at Feb. 5, 2018. The ticker symbol CYX is unchanged.
Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
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