Increasing Near-Term Mining Rate by 20%
VANCOUVER, BC – August 4, 2021 – LUXXFOLIO Holdings Inc. (the “Company” or “our” or “we” or “LUXXFOLIO”) (CSE: LUXX) (OTCQB: LUXFF) is pleased to announce through its wholly owned subsidiary WestBlock Capital Inc. (“WBC”), it has confirmed an August 2021 delivery order for 100 Bitmain S19j Pro bitcoin miners (“New Miners”) for USD$755,000 which is anticipated to increase our near-term active mining rate by approximately 20%. These top-of-the-line miners can operate at an estimated average processing speed of 100 Terahash per second (TH/s) with an aggregate estimated operating hash rate of 10 Petahash per second (PH/s). This order is separate from the price protected order announced May 27, 2021 for 2,400 miners.
Dean Linden, CEO of LUXXFOLIO commented, “This purchase is an attractive use of proceeds from the recently announced price-protection reduction announced last week, effectively reinvesting savings generated by current mining economics into additional mining capacity”.
This purchase was financed by CHP Agent Services Inc., a division of Cypress Hills Partners Inc. (“CHP”). CHP, WBC and the Company have certain common directors, officers and insiders. As such, the financing 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 financing exceeded 25 percent of the Company’s market capitalization. The Company did not file a material change report 21 days prior to the financing because the details of it had not been confirmed at that time.
Recent Company Highlights
- LUXXFOLIO began its active mining operation as announced on (NR July 28, 2021);
- The recently acquired WestBlock (NR June 15, 2021) operates a 15 MW mining operation in the Navajo Nation, New Mexico, USA;
- With the addition of the 2,400 Bitmain S19j Pro bitcoin miners previously announced (NR May 27, 2021), LUXXFOLIO is now targeting Bitcoin production to be approximately 310 PH/s by Q3 2022; and
- The Company recently up-listed in the US to the OTCQB under the symbol LUXFF (NR May 19, 2021).
Estimated Calendar Miner Delivery Dates
- Q3 2021: 400 Miners
- Q4 2021: 600 Miners
- Q1 2022: 600 Miners
- Q2 2022: 600 Miners
- Q3 2022: 300 Miners
LUXXFOLIO Holdings Inc. is a CSE-listed company based in Canada that is a vertically integrated digital asset company. We operate an industrial scale cryptocurrency mining facility in the United States running off mostly renewable energy with a focus on the blockchain ecosystem and generation of digital assets. LUXXFOLIO provides a liquid alternative for exposure to digital assets for the broader capital markets.
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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, “anticipated”, “estimated” 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, the financing of the new 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.