Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF) announced the expansion of its Bitcoin treasury division through the acquisition of one Bitcoin, bringing its total holdings to two.
The newly acquired Bitcoin was purchased using the company’s existing cash reserves and is now stored using secure wallet infrastructure that integrates with Blockmate’s audited reporting framework.
The company views Bitcoin as a strategic treasury asset and sees its role growing in importance for businesses aiming to preserve value and manage financial risk.
“As an incubator of venture projects specializing in the blockchain space, Blockmate is in a position to gain capital growth exposure to Bitcoin, while also building what could potentially be a significant capital facility,” Blockmate Ventures CEO Justin Rosenberg said in a statement.
“Coupled with the Blockmate team’s strong track record in building blockchain businesses, Blockmate will be in a stronger position to identify, incubate, commercialize and scale up more innovative blockchain and Web 3 projects.”
Blockmate believes that rising Bitcoin prices could offer operational advantages, particularly for its wholly-owned subsidiary, Blockmate Mining, by enabling rapid access to capital and facilitating fast scaling of operations.
As previously announced in May, Blockmate Mining has secured a site with electricity costs of about US$0.03 per kilowatt-hour, one of the lowest rates available in North America.
When fully developed, the site is expected to support up to 200 megawatts of mining infrastructure. Based on current Bitcoin prices and network difficulty, a fully utilized 200MW operation could generate roughly 200 Bitcoin per month.
Additionally, mining at the site could be conducted at an estimated 40% discount to the current spot price of Bitcoin, according to Blockmate.
The company added that it has no immediate plans to deploy the recently acquired Bitcoin for any specific initiative and will retain it as a balance sheet asset unless future needs arise or the asset is divested.
Further acquisitions of Bitcoin or other digital assets may be considered in the future, subject to periodic review.
Shares of Blockmate added 4.2% in Tuesday morning trading in Canada.