LARGE GLOBAL FINANCIAL INSTITUTIONS CHANGE APPROACH TO CRYPTOCURRENCIES

Publishing Date: Oct 08, 2021

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LARGE GLOBAL FINANCIAL INSTITUTIONS CHANGE APPROACH TO CRYPTOCURRENCIES

PRESS RELEASE: This week has seen even more news regarding the acceptance of cryptocurrencies in the overall financial industry.

U.S. Bancorp announced that it had launched a cryptocurrency custody service for institutional investment managers who have private funds in the United States and Cayman Islands. According to a report by Reuters, the fifth largest U.S. bank said Bitcoin-focused financial services firm NYDIG will act as a sub-custodian and the service will soon support cryptocurrencies besides Bitcoin as well.

“Investor interest in cryptocurrency and demand from our fund services clients have grown strongly over the last few years,” Gunjan Kedia, Vice Chair of the bank's Wealth Management and Investment Services said.

As a result of the crypto boom that occurred earlier this year, many companies and organisations have become noticeably more open to blockchain technology and cryptocurrencies. Therefore, it is not surprising that ETFs with a focus on crypto and blockchain are doing so well.

“Just over three years ago we launched the first actively-managed ETF focused on the dynamic market segment of blockchain-related stocks,” said Amplify CEO Christian Magoon.

 

“BLOK has provided investors with additional portfolio diversification through its unique portfolio makeup that includes the Bitcoin Investment Trust. Blockchain technology is primarily known for one application today: cryptocurrency.”

ISW Holdings, transitioning to “BlockQuarry,” pending name change, announced last month for current and prospective shareholders with a more detailed discussion about, the Company's recent landmark deal with Bitmain Technologies, producer of cryptocurrency mining hardware and a global cryptocurrency mining firm.

Total Mining Capacity and Timeline to Launch. The deal will involve 56,000 Bitmain mining rigs pairing with 200 megawatts of power at the Company's “POD- CITY” location in Georgia. The Company expects to have the first 20 MW of power paired with rigs and running full-out by October 2021. The schedule calls for having all 56k miners hooked up to all 200 MW of power and running full-out by October 2022.

 

Key Partners

The partnership is tripartite, between Bitmain, ISW Holdings, and Bit5ive.

Bitmain will bring mining machines, capital, and expertise into the bargain, consuming hosting services and power up to and potentially in excess of 200 MW for a five-year term.

Bit5ive will bring power, hosting services, project management services, and expertise to the table.

ISW Holdings will provide funding, expertise, hosting services, mining services, access to power, and access to public market investors.

For ISW Holdings, the cost for the entire roll-out to setup and activate mining machines using 200 MW of power will be a total of $62 million. $6 million of this has already been paid. $56 million remains.

The Company is currently running 700 miners, representing a mix of Bitmain Antminer S17's, BitMain S19 95TH/ s's, and Canaan Avalons. Those miners are running in POD5 units in Stronghold,Pennsylvania at a site managed by Bit5ive. The current hashrate is 36,000 TH/s, with an upside potential of 54,000 TH/s given current capacity. This operational state is capable of producing annual revenues of $4.8 million to $6 million given current three-month trailing average pricing for major cryptocurrency markets. The Company is also actively expanding its mining operations as the business scales up.

“The nature of our business changed significantly last summer when we partnered with Bit5ive and began designing state-of-the-art mining pods with a bold vision and a deep conviction in the value proposition of the cryptocurrency marketplace,” remarked Alonzo Pierce, President and Chairman of ISW Holdings.

 

“Now, just a bit over a year later, we are on the verge of becoming one of the top players in the cryptocurrency world after bringing Bitmain to the table in a deal that will see all parties unlock significant value. Looking ahead, our hosting service revenues will be stable and substantial, and capable of strong growth. And our mining revenues will fluctuate with prices in the cryptocurrency space. That will give us a strong foundation and enormous growth with a significant non-volatile component. This should put us in position to meet requirements to migrate shares to a major national listed exchange in due course. We have a number of additional catalysts in the works as well, and I look forward to providing more insights in the very near future.”

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