A Canadian company has made the unprecedented move to switch industries from mining minerals to mining cryptocurrency. In a move that is completely changing their business model, the company, Square Mining, is looking to make the move a rapid one.
Although many people might switch easily from Coke to Pepsi on a daily basis, this audacious move to switch to mining cryptocurrency is a little more complicated and is making news across the crypto-sphere today.
Moving into mining cryptocurrency
Square Mining is a company that is known for mining minerals and is traded on the Canadian Securities Exchange. Their move towards mining cryptocurrency instead of minerals is leaving some scratching their heads, but not if you fully understand the potential of the crypto mining industry.
The Canadian company is making the bold move to completely change its business model, recently securing non-brokered equity financing to the tune of 25.5 million in Canadian dollars, which the company will use to facilitate its rapid expansion into mining cryptocurrency.
Square Mining laid out their plans in a recent statement that said, “The Company is now engaged in the business of developing, manufacturing and selling data mining infrastructure and system technology (including ASIC chips and mining rigs) to support global blockchain applications in the cryptoasset mining space. Shareholder approval for the change in business by a majority of the company’s disinterested shareholders has also been obtained by way of written consent resolution.”
The money from the financing will be used to develop the concept and future support for the enterprise of creating a “next generation ASIC chip and mining rig.”
Seamless move into crypto mining?
Although the news is interesting and seems like a bed of roses, completely altering the trajectory of a company is a complicated business. Starting a new company for mining cryptocurrency is difficult enough, but to completely change the current infrastructure of a company is another issue entirely.
Trading shares in Square Mining was initially halted on July 5 as the company looked to switch their operations to mining cryptocurrency. The market reaction to the move was very favorable indeed, with the company’s stock prices going through the roof on August 14 with a massive 71.44% rise.
Although some areas of the world are hell-bent on eradicating crypto mining, such as in Vietnam, other nations have embraced the mining of cryptocurrency. Recent news has detailed how a Moroccan wind farm that will mine crypto is being constructed in the middle of the Saharan Desert that could eventually power some parts of the nation and be used by crypto mining companies.
An Australian company has also made news recently with its plans to build the first solar-powered crypto mining plant in the nation that will use renewable energy. The rise in the potential of crypto mining has no doubt forced the hand of Square Mining to explore these new and uncharted lands with its move.
It will be intriguing to see how well the Canadian firm switches from mining minerals to mining cryptocurrency in the coming months.