viewLQwD FinTech Corp.

LQwD Fintech provides network infrastructure to support the growth of Bitcoin’s Lightning Network


The Lightning Network is a solution to mass scaling the usage of Bitcoin for microtransactions globally, dramatically improving upon fees, as well as instant settlement times

Bitcoin and graph

Quick facts: LQwD FinTech Corp.


Price: 0.4 CAD

Market Cap: $29.5 m
  • The Lightning Network is a solution built on top of the Bitcoin blockchain to mass-scale its usage for microtransactions globally
  • LQwD holds Bitcoin as treasury reserve asset, and use on its Lightning Network Platform
  • The Lightning Network has seen node growth doubling and Bitcoin capacity increasing by over 50% in 2021

What it does:

LQwD FinTech Corp. (TSX-V:LQWD) (OTCQB:LQWDF) is a financial technology company that develops and provides payment network infrastructure and solutions on top of the Lightning Network, a scalable Layer 2 solution built on top of the bitcoin blockchain.

The company’s mission is to develop institutional-grade solutions that harness the Lightning Network and drive improved accessibility, functionality, transaction capability – further driving user adoption and utility and scale of Bitcoin.

The Lightning Network is a solution to mass scaling the usage of Bitcoin for microtransactions globally, dramatically improving upon fees, as well as instant settlement times.

The Lightning Network has experienced explosive growth in the past few months with node growth doubling and Lightning Network Bitcoin (BTC) capacity increasing by 51.74%.

Some well-known companies such as Jack Dorsey's Twitter and Square have expressed their enthusiasm to incorporate Lightning Network into their platforms. It is also the reason that the first country has adopted bitcoin as legal tender, in El Salvador.

LQwD also holds Bitcoin as an operating asset establishing nodes and payment channels across the Lightning Network.

How is it doing:

LQwD has made good progress on its Lightning Network Bitcoin scaling solution over the past few months, CEO Shone Anstey told shareholders in a corporate update on September 2, 2021.

Shone told shareholders that the Lightning Network has seen “explosive” growth over the past few months, with node growth doubling and Lightning Network BTC capacity increasing nearly 52%.

Since June, the company has established LSP services, payment channels and watchtowers, and launched beta testing of the platform.

The company closed its previously announced acquisition of LQwD Financial Corp. on June 9, 2021, and changed its name from Interlapse Technologies.

The company issued 22,400,001 shares to the shareholders of LQwD Financial in consideration for the transfer of all of the issued and outstanding common shares in the capital of LQwD to the company on a 1:1 basis. In addition, all outstanding warrants of LQwD Financial to acquire up to 4,000,000 common shares of LQwD Financial at a price of $0.15 per LQwD common share until January 2, 2025, were automatically adjusted to be exercisable into shares on a 1:1 basis.

In connection with the transaction, on March 23, 2021, the company closed a non-brokered private placement of 20,000,000 subscription receipts at a price of $0.25 each for gross proceeds of $5 million.

On June 15, LQwD Fintech announced that it had purchased C$2,500,000 worth of Bitcoin, at approximately C$46,500 (US$38,000) per Bitcoin since closing its acquisition of LQwD Financial Corp. Along with this purchase, the company said it now holds approximately 60 Bitcoins.

The company said the purchase signifies the start of a strategic growth initiative to accumulate Bitcoin as a reserve asset, but more importantly as an operating asset, which underpins its Lightning Network SaaS (Software-as-a-Service) platform that is under development.

On the personnel front, on July 20, 2121, LQwD Fintech announced the appointment of Lightning Network experts Joost Jager and Roy Sheinfeld as advisors to the company, effective immediately.

Jager is a Bitcoin and Lightning Infrastructure Engineer with an M.Sc. in Computer Science from Radboud University with a specialization in artificial intelligence. He has worked with San Francisco-based Lightning Labs as a lead developer and delivered multiple ground-breaking Lightning features such as hodl invoices, tlv records and probability-based routing. Currently Jager works with Bottlepay, where he provides Lightning Network expertise for the development of their European-focused wallet solution.

Sheinfeld is a software engineer and the co-founder and CEO of Breez Development Ltd., a privately held Tel Aviv-based company that builds interfaces for the Lightning economy. The Breez App is a P2P Lightning Network interface where users can buy, sell, and pay for goods, services, and streaming content with a non-custodial, seamless, and open platform. Previously, he was the co-founder and CTO of harmon.ie, a company building apps for the Digital Workplace, helping information workers professionals access and collaborate using a variety of leading cloud and on-premises services from Microsoft, IBM, Salesforce, and others.

On the financing front, on July 27, LQwD Fintech announced that it had filed a preliminary short form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada, except Quebec.

When final, the shelf prospectus will allow LQwD to offer and issue up to $50 million of common shares, warrants, subscription receipts, units, debt securities, or any combination of such securities during the 25-month period that it is effective.

The company said it was filing the shelf prospectus to maintain financial flexibility as it advances the development of the Lightning Network but added that it has no immediate intentions to undertake an offering.

Inflection points:

  • Further increases in node growth and BTC capacity for The Lightning Network
  • Continuation of the dramatic increase in the global scale and volume in the network, demonstrated through the number of nodes, channels, transactions and bitcoin active in the network
  • Accelerating growth through acquisition by targeting Lightning Network projects and LSP’s Further Bitcoin purchases

What the boss says:

In August's corporate update LQwD CEO Shone Anstey told shareholders: "We are very pleased with the progress that our team has made since completing the transaction in June. Using our highly skilled in-house team, we are continuing to develop a Lightning Network SaaS platform that enables the set-up of payment channels as a service."

“LQwD's Lightning Network SaaS platform is at an advanced level of development, with beta testing having commenced in the second half of 2021. We look forward (to) continuing along this growth trajectory and maximizing shareholder value in the process," he added.

Contact the author at jon.hopkins@proactiveinvestors.com

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