AQUIS-listed blockchain technology group Valereum is pushing forward with its takeover of the Gibraltar Stock Exchange (GSX) through a strategic reorganisation that will see the company move away from its nascent Bitcoin mining operation.
Valereum’s acquisition of GSX was first announced in October 2021 by signing an option to purchase an 80% stake in the exchange, subsequently refined up to 90% earlier this year.
GSX was the first fully licensed exchange in the British Overseas Territory after commencing operations in 2015.
While GSX only lists debt securities and open- and closed-end funds, Valereum sees far more potential for the exchange.
Valereum is seeking regulatory approval from the Gibraltar Financial Services Commission (GFSC) to turn GSX into one of the world's first fully regulated, integrated fiat and digital exchanges.
If approved, listed instruments on the GSX will have access to a regulated pool of crypto capital that is not available anywhere else, while giving cryptocurrency holders the ability to have a direct, verifiable holding in fiat securities.
However, to what extent Valereum’s GSX venture signals a bullish outlook on crypto is unclear.
Writing in City A.M., Valereum’s executive director Patrick Young said: “As Bitcoin heads for the obituaries, cryptocurrencies can finally mature,” adding: “Perhaps there is one more rally to new highs to come, but the baton will soon be handed over to a new generation of much more modern, flexible, cheaper to use and scalable cryptocurrencies.”
"Crypto Is Dead, Long Live Crypto" is my maxim for summer as #cryptowinter bites but the future looks very promising when spring emerges...@CityAM @ValereumPLC @silvesterldn @saschaosullivan #Crypto #cryptocurrency #Bitcoin https://t.co/lBCsF5jItJ
— Patrick L Young (@FrontierFinance) August 19, 2022
Young proceeded to tout central bank digital currencies (CBDCs) as key to “widespread adoption”, signalling his interest in government-issued stablecoins over open-source, decentralised protocols.
Valereum is also in the process of establishing an NFT marketplace.
Pivot away from BTC mining
Valereum first signalled its venture into Bitcoin mining with the purchase and installation of 20 mining machines in a US facility in April 2021.
But as part of the GSX takeover, the company announced last Friday an agreement to sell its Bitcoin mining assets to Vinanz in exchange for 24% of the company’s shares (specific transaction values were not disclosed).
Thus concludes a fairly brief mining stint for Valereum, although the 24% stake in Vinanz will continue to provide substantial exposure to the volatile industry.
As for Vinanz, chairman David Lenigas said of the recent transaction: "Our job at Vinanz will be to try and grow the number of miners and the size of our wallet as quickly as possible.
“The volatile Bitcoin price has taken a bit of a price hit in recent times, but the board of Vinanz sees this as a great time to grow a substantial BTC business.”
Valereum has been approached for comment.