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Codebase in $2.5M deal to enter bit mining to ride Bitcoin’s price rise and long-term potential

The tech-centric investment firm has inked a definitive agreement to acquire US-based bit mining infrastructure for long-term revenue generation

CODEBASE VENTURES INC. - Codebase Ventures in $2.5M deal to enter the bit mining space to ride Bitcoin’s price rise and long-term potential
Codebase President George Tsafalas said cryptocurrencies, including Bitcoin, have risen sharply in the last few months, and Codebase believes 'there is still long-term potential'

Codebase Ventures Inc (CSE:CODE) (FRA:C5B) (OTCQB:BKLLF), a tech-centric investment company, revealed on Friday that it has inked a $2.5 million definitive agreement to acquire bit mining infrastructure in the US for long-term revenue generation. 

“Cryptocurrencies, including Bitcoin, have risen sharply in the last few months, and Codebase believes there is still long-term potential, as evidenced through recent brokerage analyst coverage, and mainstream investments,” Codebase President George Tsafalas said in a statement.

Codebase’s investment will deliver the first phase of 9,450 Petahash per second worth of mining rigs fully hosted in the US. The company said it has the option for a second tranche of an equal number of mining rigs for a period of one year. 

READ: Codebase says its portfolio holding Arcology meets internal targets in first testnet

In a statement, the group said the arms-length agreement calls for an initial cash payment of $500,000 and the issuance of 7 million shares issued at a deemed price of $0.25 per share. All shares issued will have a 4-month statutory hold. As part of the transaction, the vendor will provide hosting and management services at an all-in price of $0.075 per kilowatt-hour for two years.

If Codebase exercises its option to acquire a second tranche, a similar number of mining rigs will cost $500,000 and $750,000 to be paid by way of shares issued at the then-current market price.

Codebase’s primary blockchain interest is in Arcology, a cluster-computing powered AI blockchain ecosystem with unlimited scalability. Arcology, in which Codebase owns a 30% stake, with an option to increase its interest to 51%, is a radically new hierarchical blockchain that uses proprietary algorithms and artificial intelligence to eliminate inefficiencies that hinder rival blockchain platforms.

“Arcology is progressing towards its second Testnet and the release of its software development kit as previously announced,” said the company.

Codebase said that it will “consider future additional blockchain investments as the price of bitcoin and other cryptocurrencies continue to rise and overall adoption of cryptocurrencies continues to expand.”

Codebase invests in early-stage technology and cannabis companies. The venture capital company aims to take stakes in fledgling companies with a focus on investing in companies with "outstanding talent, teams and technology." With its headquarters in Brooklyn, Codebase’s team members are based globally from Belgrade to Vancouver.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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CSE:CODE
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