360 Blockchain Inc (CSE:CODE) told investors it had closed its previously announced acquisition of 60% of shares in Silicon Valley-based SV CryptoLab.
It has the option to purchase the remaining 40% for US$75,000. The company paid US$250,000 and issued 5,000,000 shares.
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"We are excited to reach this milestone, completing our initial acquisition in the blockchain space, so that we can scale this concept,” said George Tsafalas, 360 Blockchain Inc’s president and chief executive.
"We are working to replicate SV CryptoLab’s business model, together with its proprietary evaluation algorithm, in other cities soon," he added.
During working hours, SV CryptoLab is a cutting-edge facility open to the public and blockchain and cryptocurrency enthusiasts are invited to attend weekly meetups and hackathons free of charge.
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But on nights and weekends, the facility’s hardware is dedicated to mining cryptocurrency, a computationally intensive process that sits at the heart of Bitcoin and other cryptocurrencies. SV CryptoLab utilises a proprietary evaluation algorithm to determine the most attractive cloud-mining contracts.
360’s CryptoLab will lead the development of blockchain technologies for the company with its access to engineering talent enabling the monetization of its R&D efforts.