Crypto Blockchain Industries (CBI), Euronext Growth Paris: FR0014007LW0 – ALCBI, and Blockware, a Bitcoin mining firm, have entered into an initial “long-term” partnership agreement to operate Bitmain ASIC miners (ASICs) on the Bitcoin network and “acquire Bitcoin at a discount.”
Blockware will deploy and “operate CBI’s Bitmain mining fleet.”
The first tranche of $10 million worth of ASICs will “be financed progressively by CBI as funding is arranged.”
In return, CBI will receive the rewards (BTC) generated “through the mining activity, enabling the acquisition of Bitcoin below the market spot price.”
The partnership reportedly provides Blockware the opportunity to “be partly compensated in CBI shares; its final ownership percentage will depend on the business’s development over the partnership.”
Blockware will be responsible for the deployment and “management CBI’s next-generation Bitmain ASIC mining fleet.”
These mining rigs will process and confirm transactions “on the Bitcoin network.”
The $10 million first tranche of server investments will “become operational progressively as CBI secures the required funding.”
The Bitcoins obtained will be deposited daily “into a secure wallet managed and owned by CBI.”
This opportunity enables CBI to acquire Bitcoin “at a discounted rate, made possible by the efficient operation of its mining fleet.”
Through this agreement and by leveraging Blockware’s expertise, CBI gains the opportunity “to acquire Bitcoin at a discount and increase its crypto-asset portfolio.”
Bitcoin mining operations provide “a form of compensation that, over time, results in Bitcoin acquisitions at prices lower than market spot rates.”
The discount level is determined at the end of each cycle—typically 3 years—and depends “on operating costs (mainly electricity) and the number of transactions processed.”
Through this partnership, Blockware expands its megawatts under management, “grows its ASIC marketplace, and diversifies its portfolio by leveraging this significant opportunity.”
The deal structure allows CBI to secure cost-efficient hosting and access to worldclass brokerage services “via Blockware, resulting in a low all-in cost per Bitcoin.”
The partnership provides Blockware the opportunity “to be partly compensated in CBI shares.”
Throughout the partnership Blockware will “receive shares representing at minimum 0.5% of CBI’s capital.”
Furthermore, Blockware will receive a portion of its profits “through CBI shares upon the resale of the ASICs.”
Blockware’s final ownership percentage in CBI will “depend on the development of the business over the partnership.”
CBI has the option to gradually “increase production capacity under predefined conditions.”
Blockware ensures that up to 3 years, “through their extensive network and ASIC marketplace they will secure a resale value of at least 25%, although CBI is under no obligation to sell them.”
Blockware’s unique ASIC marketplace offers clients “a simplified, premium platform to start mining Bitcoin in just a few clicks, eliminating many of the common barriers to entry.”
Through this strategic partnership, CBI enhances its position in the crypto-asset space and implements “a flexible, resilient, and long-term performance-oriented strategy.”