LUXXFOLIO Holdings a Canada-based, vertically integrated digital asset company, announced a strategic investment from BIGG Digital Assets Inc. BIGG (CSE:BIGG) (OTCQX:BBKCF) acquired 12.5 million units priced at $0.16 per unit. Each unit consisted of one share and one warrant, with the warrant exercisable at $0.21 for a period of 24 months, subject to an acceleration clause.
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Net proceeds will be used for future capex and operating expenses, or other such areas as may be determined by the Board. BIGG now owns approximately 15% of LUXXFOLIO and as long as they maintain an equity interest of 10% or greater, they will be entitled to appoint one member to LUXXFOLIO’s Board of Directors along with certain pre-emptive rights.
BIGG’s principal business units consist of Netcoins the online cryptocurrency brokerage that makes it easy for Canadians to buy, sell, and understand cryptocurrency, and Blockchain Intelligence Group (www.blockchaingroup.io), a leading developer of blockchain technology search, risk-scoring and data analytics solutions.
LUXXFOLIO had been seeking a strategic partner to help fund its next phase of growth in both the traditional Bitcoin mining vertical and more recently an entrance into a decentralized data storage vertical. Decentralized storage supports the advancements in cloud computing and includes high growth areas such as scientific research and development, AI (artificial intelligence) and 3-D modelling.
Ken MacLean, President of LUXXFOLIO, stated: “We are thrilled to welcome BIGG as a major shareholder in LUXXFOLIO. BIGG will be an excellent partner as we navigate the opportunities in the current volatile market. Mark Binns and his team support our vision, and with their investment, we can continue to be opportunistic on the execution of our 2022 plan.”
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LUXXFOLIO operates, through its wholly owned subsidiary, an industrial scale cryptocurrency mining facility in New Mexico, powered primarily by renewable energy. The mining site is currently operating at approximately 180 PH/s, an increase of 6% month over month from the 170 PH/s rate on March 31st and reported that 25.22 Bitcoins were mined during May.
Mark Binns, CEO of BIGG, added: “BIGG is first and foremost a digital assets company – and complementary to our holdings in crypto forensics, crypto trading and Metaverse/NFT is crypto mining – a mainstay and essential component to the digital asset economy. We believe LUXXFOLIO can become a global leader in sustainable crypto mining and has established an excellent beach head operation in New Mexico with significant expansion potential. The team at LUXXFOLIO, led by Ken MacLean, have built deep relationships in the crypto mining community and have grown the business through multiple crypto pricing cycles.”
Ken Maclean, President LUXXFOLIO, continued: “Our current power costs equate to approximately $7,900 to produce one Bitcoin. Having stable power pricing in a rising inflationary environment is a key sustainable differentiating factor for LUXXFOLIO as we continue to see other players in the industry exposed to this risk. This coupled with our completed power expansion and delivery of new miners over the next quarter provides a solid foundation for the future.”
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