360 Blockchain Inc (CNSX:CODE) told investors that its acquisition target, SV CryptoLab, has upgraded its network to increase its cryptocurrency mining capacity.
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.
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Silicon-valley based CryptoLab has upgraded its mining rig to include state-of-the-art Antminer, the firm said, while its proprietary evaluation algorithm will target the most attractive cloud-mining contracts.
"The upgrade of the SV CryptoLab technology, including its network, readies our company with an opportunity to benefit from an increase in cryptocurrency mining," said George Tsafalas, 360 Blockchain's president.
"The new technology, along with SV CryptoLab's proprietary evaluation algorithm, will empower the company to identify and focus specifically on the most attractive cloud-mining contracts."
360's due diligence on its proposed investment in SV CryptoLab is continuing, but the firm noted that there was no assurance that the proposed acquisition will complete.
In November this year, 360 said it was set to acquire 60% of SV Crypto Lab (SV) via a non-binding letter of intent.
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While no definitive documentation was signed, terms included that 360 would acquire 60%, with the option to purchase the remaining 40%.
"In preparation for scaling our business model, we have installed an additional Antminer to increase bitcoin research and mining capacity," said James Cerna, founder and chief executive of SV CryptoLab.
"This state-of-the-art mining rig uses more than 180 specific microprocessors, increasing efficiency and the company's overall capabilities," he added.
Shares eased 1.89% to C$0.26.