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Company Aims to Be Lowest-Cost Blockchain Producer

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A company that aims to become the lowest-cost producer for digital currency mining and blockchain infrastructure has picked up a facility with low-cost electricity in Washington State.

Atlas Cloud Enterprises Inc. (AKE:CSE) is acquiring a 6,600-square foot location in Washington State, which is coming through the acquisition of MKH Electric City Holdings LLC. Atlas Cloud believes that the facility will be "ideal for digital currency mining."

The facility is located a few miles from the Grand Coulee Dam. The company noted in a Dec. 21 news release that the facility "significantly benefits from electrical provisioning at approximately $0.03/kWh, one of the least expensive commercial rates in the world. Atlas Cloud's energy consumption dedicated to digital currency mining for this individual location is 3.0 megawatts (MW), supplied by the Grant County Public Utility Department with the ability to upgrade to 5 MW."

Atlas Cloud noted that by using 80% of the current 3.0 MW of dedicated power, the facility can host "up to 1,700 Application Specific Integrated Circuit (ASIC) mining servers." The second phase of an additional 2.0 MW "is expected to be completed in 2019, increasing total energy dedicated to digital currency mining to 5.0 MW."

The company also highlighted that it believes "the path to long term success is through ownership of strategically located facilities where it can host its mining operations within secure and stable locations offering favorable climatic conditions, along with dedicated energy sources at advantageous rates."

Atlas Cloud CEO Fred Stearman stated, "We are thrilled to transition and launch into the operational phase of commercialization of our new Bitcoin mining facility. Our recent and successful financing efforts have launched what we believe will be one of the most cost-efficient and scalable operations in the business. Washington State is an excellent jurisdiction with its access to abundant inexpensive electricity, good governance, and a cool climate important for economic server operations."

On Jan. 2, Atlas Cloud announced that the Canadian Securities Exchange has determined that because the Washington facility will used for cryptocurrency mining and the company's other facilities have been used for cloud storage infrastructure, that is a change of business, requiring approval by the Exchange and security holders. The company noted that it "anticipates making the required submissions to the Exchange immediately with a view to completing the change of business during the first quarter of 2018."

Blockchain is the technology behind cryptocurrencies, and it eliminates the need for third-party verification because it is verified by the mining network. This mining requires substantial computational power, which is electricity intensive. As miners solve cryptographical problems to verify transactions, they are rewarded in cryptocurrency.

Blockchain is quickly gaining traction not only as the technology behind bitcoin, but also for numerous other applications, such as asset management, insurance and healthcare.

"Atlas Cloud aims to become the lowest-cost producer for digital currency mining and blockchain infrastructure," the company has stated.

Atlas Cloud recently closed an oversubscribed $14 million financing.

Atlas Cloud has approximately 116 million shares outstanding and a market cap of CA$120 million.

Additional note: On Jan. 8, technical analyst Clive Maund wrote: " Atlas Cloud is a Blockchain/Cryptocurrency mining stock that looks like it is ready to commence another upleg to new highs. A big competitive advantage that the company has is that its electrical power costs, a big cost factor for Blockchain companies, are low. On its 6-month chart we can see that, although it has risen a lot since its recent upleg began back last October, it does not look like it is marking out a top here. The pattern of declining volume, especially in recent weeks, suggests that it has been in a price/time correction since its mid-November intraday spike that has allowed its earlier overbought condition to unwind and the 50-day moving average to catch up with the price. This corrective action has put it in position to take off higher again."

1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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