STOCKHOLM, 26 September 2018 / PRNewswire / –
Stockholm IT Ventures AB (Frankfurt Stock Exchange: SVAB – ISIN SE 0006027546), announced today that it has signed a Memorandum of Understanding ("MOU") binding with Evolution Global AS, a developer of innovative solutions to encrypt the acquisition of an option to purchase up to 10,000 Bitcoin mining capacity Petahash from extract Evolution Global.
Evolution Global is at the final stage of developing a new application-specific integrated circuit (ASIC) chip that will likely outperform all Bitcoin mining and mining equipment in terms of costs and may therefore be able to deliver a substantial share of the remaining Bitcoin available to be extracted. An independent consultant engaged by SITV conducted a technical due diligence of the chip this summer and concluded that Evolution Global is likely to succeed.
The parties have agreed to provide financing for chip development through the joint installation of a new public company called Cryptoplants AB in which Stockholm IT Ventures will hold a 45% stake. External funding will be collected in the company, raising the Stockholm financial commitments. If successful, Stockholm IT can purchase capacity from Evolution Global at low cost. This option will be divided into holders of the Bytemine token currently in progress in an ICO procedure led by Stockholm IT.
Stockholm IT Ventures CEO Anthony Norman commented:"After Stockholm started the Cryptotech project at the start of 2018, which was subsequently suspended, we took a very careful position towards the mining chip development segment, given the market conditions . Erik Solberg closely and we believe that if successful, this gives us a huge advantage. This agreement allows us to pursue the opportunity without financial exposure to Stockholm IT. Having seen the latest results and due diligence, we are strong believers in the ability of Evolution Global to succeed. "
Evolution Global CEO Erik Solberg He said: "After hiring a new chip development team at the start of this spring, our progress has been very successful and we have had a lot of interest from potential big customers all over the world, but Stockholm IT has presented a & Offer that is a win-win situation for both of our companies and we are looking forward to becoming a partner in Cryptoplants and together we start mining in 2019. "
Main key points of the MOU
- Criptoplants was granted an option ("Option") for a payment of the option price to Evolution Global up to € 6,000,000 in installments over an approximate period of five months to acquire up to 10,000 Petahash for a discounted discounted price of € 120 / Terrahash, for a maximum period of three years, or in some cases a longer period. The actual flat-rate PH price is between 20% and 25% of the total price offered by Bitcoin's cloud mining contracts. At current Petahash market prices, the current conversion rates of Petahash in Bitcoin and current Bitcoin prices, the Option could potentially generate a pre-tax profit for Cryptoplants above € 1,000,000,000. The actual profitability may be significantly lower and will depend on the performance of the new ASIC, the pricing trends of Petahash and Bitcoin, the number of Petahash required to generate Bitcoin and the timing and methods used to finance and monetize the Option. In addition, it is likely that the Criptoplant will sell the share capital and support the debt to finance part of the purchase price of the option.
- The Option may be exercised in whole or in part and from time to time on a pro rata basis with other Evolution Global and Petahash customers which will be retained by Evolution Global. The Option can be assigned in whole or in part, according to the usual AML and KYC requirements. If Cryptoplants finances only a portion of the option, the right of Cryptoplants to buy the initial Petahash will be reduced pro rata or delayed.
The MOU is immediately effective. If the definitive agreements concerning certain ancillary aspects are not executed by November 15, 2018, under certain conditions, the MOU can be resolved.
The concise description of this press release is qualified by the most complete terms established in the MOU and established in definitive agreements.
Information about Stockholm IT Ventures AB
Stockholm IT Ventures AB is a Swedish public company listed on the Frankfurt Stock Exchange under the symbol SVAB since 2014. Stockholm IT specializes in mining and production cryptocurrency, crypto asset management and related FinTech and Blockchain technologies. For more information, visit www.stockholmit.co. You can also find them on Facebook, chirping and LinkedIn. Details about the token and the Stockholm IT & # 39; s Bytemine (BYTM) white paper are available here: www.bytemine.io.
About Evolution Global AS
Evolution Global AS was founded by Erik Solberg in the spring of 2018. Evolution Global has hired an international team of chip developers with a proven track record that has worked on development and testing from April 2018. The company is in the final stages of introducing a new chip that will likely outperform all Bitcoin mining ASICs in terms of costs. The company plans to sell 15,000 Petahash of total mining capacity to external customers and also has an agreement with Cryptotech AS to provide hashrates to all their customers.
Contact with the media ::
Stockholm IT Ventures AB,
Telephone: + 46-10-138-86-44
This information was provided by Cision https://news.cision.com