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by Stockwatch Business Reporter
The TSX Venture Exchange dropped 21.33 points to 889.51 Thursday. Richard Buzbuzian's first capital pool shell, the halted Oriana Resources Corp. (OUP), has provided details on the financing plans of its qualifying transaction target, Hut 8 Mining Corp. The target, which is a cryptocurrency mining promotion and not a metal mining promotion, plans to sell a $70-million private placement at $5.
Last month, Hut 8 sold a $38-million private placement at $2.50. It received $25.42-million of the proceeds in cash and the remaining $12.57-million in bitcoins. Since closing that financing, the value of a bitcoin has slipped to $13,130 (U.S.) from $16,467 (U.S.).
Hut 8 has used part of the proceeds of the first private placement to acquire seven data centres. It will use the rest of the proceeds to buy 15 more. Then, the resulting issuer will use the proceeds of the second private placement to buy another 35 data centres, bringing the total to 57. At all of these data centres, the resulting issuer will conduct cryptocurrency mining, which is the process of earning cryptocurrencies (for instance bitcoin) in exchange for computing capacity. That is, as the cryptocurrency miner offers its hardware and software capacity to blockchain operators on-line, it earns cryptocurrencies in exchange.
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