Squire Mining, a minerals mining company traded on the Canadian Securities Exchange said it is moving from physical to cryptocurrency mining. The company has finalized a non-brokered private placement equity financing of C$ 25.5 million, which Squire Mining will use to fund its business model change.
“The Company is now engaged in the business of developing, manufacturing and selling data mining infrastructure and system technology (including ASIC chips and mining rigs) to support global blockchain applications in the cryptoasset mining space. Shareholder approval for the Change in Business by a majority of the Company’s disinterested shareholders has also been obtained by way of written consent resolution,” Squire Mining said in a statement.
The proceedings will be used for the development and future support of a “next generation ASIC chip and mining rig”. While the product is not available yet, the company has already signed an exclusive distributor agreement.
Trading in Squire Mining shares was halted on July 5, when the company announced a major news release. The market reaction was initially positive, as the company’s stock soared by 71.43% on August 14, the day trading was resumed.
Source: The Canadian Securities Exchange
The story may sound somewhat familiar to people following the cryptocurrency space. A US beverages company, changed its name during the peak of the cryptocurrency hysteria in December 2017, from Long Island Iced Tea to Long Blockchain. The firm later went on to buy ASIC miners, but subsequently scrapped the idea and moved into the loyalty programs business.