360 Blockchain Inc (CNSX:CODE) has potentially furthered its involvement in blockchain technology as its acqusition target SV CryptoLab has expanded its cryptocurrency mining to include on-site bitcoin mining.
Earlier this month, 360 revealed it was set to acquire 60% of Silicon Valley based SV Crypto Lab (SV) via a non biding letter of intent. The deal is expected to close in coming weeks.
While no definitive documentation has yet been signed, terms of the proposed acquisition include that 360 would acquire 60%, with the option to purchase the remaining 40%.
The purchase price to be paid to SV shareholders is US$ $250,000 and 5,000,000 shares of 360.
Cryptocurrency mining is the computer process that allows Bitcoin transactions to be verified and added to the public ledger, called the blockchain, and which results in the release of new Bitcoins, 360 explained in today's statement.
Previously, SV CryptoLab has used a cloud-based cryptocurrency mining operation that is generating revenue, but the new hardware will exclusively mine Bitcoin.
The capacity for the mining operation will be substantially increased upon completion of the proposed acquisition by 360 Blockchain Inc.
"By initiating the Bitcoin mining operation on-site, our SV CryptoLab target is taking an important step, generating value as it will become a key contributor to the portfolio of early stage blockchain technology companies we are building," said George Tsafalas, 360 president and chief executive.
Shares zoomed up over 17% to C$0.27 each.