LUXXFOLIO Announces Closing of Acquisition of 2400 Bitcoin Miners
NEWS RELEASE
Delivery of Initial Miners Scheduled for June 2021
VANCOUVER, BC – May 27, 2021 — LUXXFOLIO Holdings Inc. (the “Company” or “LUXXFOLIO”) (CSE: LUXX) (OTCQB: LUXFF) is pleased to announce through its wholly owned subsidiary Luxxfolio Network Inc. (“LNI”) that it has finalized the terms to finance the order of the 2400 Bitmain S19j Pro bitcoin miners (“New Miners”) that was disclosed early this month. These top-of-the-line miners can operate at an estimated 100 TH/s with an aggregate estimated operating hash rate of 240 Petahashes (PH/s) per second. The quarterly delivery schedule, which includes the 590 Avalon A1246 miners ordered in December 2020, is planned as follows:
Calendar Delivery Dates
- Q2 2021: 590 Miners
- Q3 2021: 300 Miners
- Q4 2021: 600 Miners
- Q1 2022: 600 Miners
- Q2 2022: 600 Miners
- Q3 2022: 300 Miners
The financing to purchase the New Miners is an asset backed lending structure (the “ABL”) with NYDIG, a leading provider of investment and technology solutions for Bitcoin. The firm provides a comprehensive suite of services for institutional bitcoin miners, including equipment procurement and financing, custody, execution, derivatives, hedging and other customized solutions.
Dean Linden, CEO of LUXXFOLIO commented, “With our initial set of miners expected to be delivered in June 2021 and recent hash rate/difficulty declines on the Bitcoin network, we believe we will be well positioned to capitalize on our mining operations.”
Recent Company Highlights
- LUXXFOLIO recently entered into a definitive agreement to acquire WestBlock Capital Inc. (“WestBlock”) which operates a 15 MW mining operation;
- The anticipated operating hash power of the Company shortly after closing of the WestBlock transaction is targeted to be 63 PH’s;
- With the addition of the 2400 New Miners, LUXXFOLIO is targeting Bitcoin production to be approximately 303 PH’s by Q3 2022.
CHP Agent Services (“CHP”) entered into a participation agreement with NYDIG to acquire a participation interest in connection with the ABL (the “Participation”).
CHP, LNI and the Company have certain common directors, officers and insiders. As such, the Participation is a related-party transaction as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Based on Section 5.5(b) of MI 61-101, the Company is exempt from having to obtain a formal valuation. The Company has also relied upon Section 5.7(1)(a) of MI 61-101 to be exempt from the minority approval requirement on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Participation exceeded 25 per cent of the Company’s market capitalization.
It is not anticipated the Participation will have any impact on the Company or its business. As the Participation did not involve either the Company or LNI directly, there was no review or consideration of the transaction prior to CHP’s involvement therein.
The Company did not file a material change report 21 days prior to the Participation because the details of it had not been confirmed at that time, and the Company was not directly involved in the transaction.
About LUXXFOLIO
LUXXFOLIO Holdings Inc. is a growth-oriented, CSE-listed company based in Canada. The Company is a digital infrastructure provider for bitcoin mining and data hosting operations. The Company seeks to utilize blockchain technology to convert unique identifiable assets (UIAs) into fungible digital assets such as Bitcoin and other types of non-fungible digital assets. It provides a liquid alternative for exposure to digital assets for the broader capital markets.
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Contact Information:
For more information, please contact:
Dean Linden, Chief Executive Officer
Tel: (604) 398-3837
Email: dlinden@luxxfolio.com
www.luxxfolio.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, “scheduled”, “planned”, “estimated”, “anticipated”, “will be”, “seeks”, or variations of such words and phrases or statements that certain actions, events, or results “will” occur. Forward-looking statements regarding the Company, WestBlock, the New Miners or other miners, and the Company’s development of its growth strategy are based on the Company’s estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its subsidiary to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.