Quantum Blockchain Technologies PLC (AIM:QBT) this week gave investors an update on its AI-driven mining optimisation technologies.
The company said it is in discussions with two firms to implement its methods A and B onto aftermarket control boards used in mining rigs.
One unnamed company is already running thousands of miners on its proprietary control boards. The company noted that a commercial agreement could be completed after summer.
Quantum Blockchain chief executive Francesco Gardin joined the Proactive studio, here, we take a closer look at what he had to say.
Proactive: I'm joined by Quantum Blockchain Technologies CEO Francesco Gardin. Francesco, very good to speak with you.
You've announced discussions with two companies to support methods A and B onto aftermarket control boards.
How soon could investors see revenue from these partnerships?
Francesco Gardin: Very good morning Stephen. Okay, you went straight to the core of the matter - revenues. Of course, I cannot give you a precise date, just an estimate.
There are a few partners, less than ten worldwide, working on modifying control boards of the most sold miners, particularly from two Chinese manufacturers.
We’re working with partners who have tens of thousands of boards already installed.
You buy a mining rig, replace the control board, and you gain hashing power due to some physical optimisation. We sit on top of this optimisation.
Porting our methods onto these boards is not a major issue, we’ve already done this at the software level in our lab. Some boards will need to communicate with our servers, others will be more autonomous.
We aim to deliver this after summer, following the conclusion of commercial negotiations.
One company, which we can't name, developed the tech not to sell but for internal use. They operate thousands of miners. That’s a key target.
Proactive: What kind of performance improvements have your AI methods shown in live testing, and how do they translate into economic benefits for miners?
Francesco Gardin: Starting with method A, it originally offered a 10% improvement. We are now redesigning it to work on any ASIC chip.
While waiting for the new ASICs, we generalised the method. Currently, it offers a 3% increase in hashing power, small, but with no additional energy use.
Say you mine 1,000 Bitcoins, a 3% gain is 30 Bitcoin, which is $3 million at today’s prices.
The response from mid-sized miners was very positive. For many, this could move them from breakeven to profitability.
We also have other methods showing over 10% gains in more restricted settings. Then there’s method C, which can potentially deliver up to 30%.
That would significantly change mining economics, but it requires hardware integration.
Proactive: Can you explain how method C differs and why integration with ASIC chip makers is important?
Francesco Gardin: Method C has to be extremely fast. We’re developing a version in software with high performance. It acts like an oracle, deciding whether a computation is worth performing.
That decision consumes much less energy than the computation itself.
When we talk to ASIC designers, they see this as a shortcut to close a performance gap with dominant producers.
It’s very appealing, which is why they’re all talking to us.
Proactive: How scalable is your technology across hardware platforms?
Francesco Gardin: Methods A and B are extremely scalable. Method C requires a new chip design—around a $20 million commitment.
Once manufacturers gain confidence, they will integrate our IP into their next-generation chips.
Chip development is a continuous process, so we expect to join upcoming design cycles.
Proactive: Francesco, I hope you will continue to keep us updated.