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VANCOUVER, British Columbia, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Block One Capital Inc. (TSXV: BLOK, OTCQB: BKPPF, Frankfurt: ES3) (the "Company" or "Block One Capital"), an investment company focused on high growth opportunities in the blockchain sector, is pleased to announce that its Chief Technology Officer, Dr. Pratheev Sreetharan (PhD Harvard University), and Director of Research, Dr. Sivakumar Arumugam (PhD Columbia University), have published a revealing analysis of the bitcoin mining sector utilizing publicly available global hash rate information.
Their research paper highlights the following realities of Bitcoin mining (The research paper can be found on Block One Capital’s website at www.blockonecap.com):
1) As more and more new Bitcoin miners come on line, the rapid rise in global hash rate rates is leading to a rapid fall in the number of expected Bitcoins to mined by mining hardware.
2) Profitability of mining machines is falling quickly over time.
3) At an exchange rate of $10,000 per Bitcoin, a miner operating with an average cost structure will be unable to achieve profitably within a few months.
4) Mining hardware is most profitable in its first days of operations.
5) Delays in the deployment of mining equipment has a huge impact on revenue generation.
6) Investing in new mining equipment currently will likely not produce very good future returns.
Dr. Sivakumar Arumugam concluded, “The striking divergence between the global hash rate and Bitcoin prices suggests that mining is becoming increasingly unprofitable.”
The review of publicly available data reveals that the global hash rate has been increasing at a steady exponential rate in recent months. As adjustments to the hash rate may take several more months to work themselves out, Dr. Arumugam added that “Purchasing new equipment now is unlikely to give a positive rate of return.”
“I am grateful to have had the guidance of a strong research team in our decision-making process over the last couple of months,” said Sothi Thillairajah, CEO of Block One Capital. “The conclusions of the study support our early decision to exit the Bitcoin mining business.”
About Block One Capital Inc.
Block One Capital. is an investment company focused on early stage and high growth opportunities in the blockchain sector. Block One Capital is a listed investment issuer on the TSX Venture Exchange: BLOK. Block One Capital seeks to invest in early stage blockchain technologies at attractive valuations. Block One Capital seeks to access attractive pre-token issuance blockchain equity investments for its investors. Block One Capital seeks to acquire a significant minority stake when possible. Utilizing our accomplished management, director, and advisory team, Block One Capital seeks to provide investors with a diversified basket of blockchain exposure.
For more information on Block One Capital, please visit the Company's website at www.blockonecap.com.
Chief Executive Officer
This news release contains forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to Block One Capital's investment focus, the Company's expectations and estimates regarding the profitability of Bitcoin mining, including expected global hashrate and Bitcoin prices, and the Company's plans to exit the Bitcoin mining business. Although Block One Capital believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, including the general acceptability of blockchain, risks associated with regulatory changes and the retail sector generally, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks and receipt of necessary TSX Venture Exchange approvals. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Block One Capital Inc.
Office: 604-398-4485; email: firstname.lastname@example.org