Vancouver, B.C., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Dynamite Blockchain Corp. (the "Company" or "Dynamite") (CSE: KAS) is pleased to announce that, further to its news release dated December 2, 2024, it has terminated its previously proposed acquisition (the "Original Acquisition") of 100% of the outstanding shares of Kaspa Mining Limited ("Kaspa Mining") and entered into a new arm's length share purchase agreement (the "Restructured Agreement") dated January 28, 2025.
About Kaspa Mining Limited
Kaspa Mining's operation is composed of 25 Bitmain KS5 Pro miners collectively producing approximately 510 TH/s towards the mining of Kaspa and is hosted pursuant to a competitively priced management services agreement (the "MSA") with 1001038815 Ontario Inc. (the "Mining Host").
Among other things, the MSA (i) provides Kaspa Mining with a competitive electricity rate of CAD $0.055 per kilowatt-hour, (ii) hosts Kaspa Mining's operation through the Mining Host's proprietary AI-driven optimization software, KASPAMind, which is designed to enhance mining efficiency, optimize hardware performance and maximize rewards by adapting to Kaspa's unique proof-of-work (PoW) architecture and (iii) allows Kaspa Mining the ability to increase operational capacity to 100 miners with continued support.
About Kaspa
Kaspa's innovative blockDAG architecture enables this digital asset to be scalable, secure and decentralized, by allowing multiple blocks to be created and validated simultaneously1. Due to this, Kaspa achieves significant transaction throughput without compromising security or decentralization2. The Company believes these attributes position Kaspa as a truly scalable and sustainable digital asset for real-world applications.
"This acquisition marks another significant step towards the Company's mission to become a leader in the Kaspa ecosystem," commented Akshay Sood, CEO of Dynamite.
"At Dynamite Blockchain, we believe in leading with purpose and innovation. By integrating a minority interest in Kaspa Mining's robust operations into our ecosystem, we are not only indirectly strengthening our mining capabilities but also reinforcing our position as a key player in shaping the future of blockchain technology," added Mr. Sood.
The Restructured Agreement provides for the Company's acquisition of an initial 20% stake in Kaspa Mining from Kaspa Mining's current shareholders (the "Vendors") for CAD$1 million, to be settled by way of an interest-bearing promissory note providing for, among other things, minimum payments by the Company of $200,000 every six months until maturity. As a result of the termination of the Original Acquisition, the Company will no longer be issuing the 30,000,000 shares associated with that transaction. The Restructured Agreement provides for a right of first refusal in the Company's favour in respect of further transfers of shares of Kaspa Mining by the Vendors and a pre-emptive right in the Company's favour in respect of future equity issuances by Kaspa Mining. The Company expects to make the payments with the proceeds from future equity and fundraising efforts. Completion of the Restructured Agreement is subject to customary conditions precedent and is targeted for January 30, 2024.
"This acquisition signifies Dynamite Blockchain's commitment to driving the adoption and utility of Kaspa as a next generation blockchain ecosystem. In doing so, the Company intends to continue laying the groundwork for transformative applications and cutting-edge infrastructure that will redefine how decentralized systems operate in the real world", concluded Mr. Sood.
On behalf of the Company,
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Akshay Sood,
Chief Executive Officer
Telephone: 236-259-0279
About Dynamite Blockchain Corp.
Dynamite Blockchain is a blockchain technology infrastructure company focused on building a diversified blockchain ecosystem focused on Kaspa.
Forward-Looking Statements
The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward-looking statements in this news release include, without limitation, statements respecting: the Restructured Agreement and completion of the transactions contemplated therein; AI-driven KASPAMind software's ability to enhance mining efficiency, optimize hardware performance and maximize rewards by adapting to Kaspa's unique proof-of-work (PoW) architecture; further expansion of Kaspa Mining's operation under the MSA; Kaspa being a truly scalable and sustainable digital asset for real-world applications; the further strengthening of Dynamite's mining capabilities and the reinforcement of its position as a key player in shaping the future of blockchain technology; Dynamite's commitment to driving the adoption and utility of Kaspa as a next generation blockchain ecosystem; and the Company's intention to continue lay the groundwork for transformative applications and cutting-edge infrastructure that will redefine how decentralized systems operate in the real world. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements, or otherwise.
The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
Footnotes:
1.Kaspa Homepage: https://kaspa.network/
2.Kaspa Technology Overview: https://kaspa.network/technology/
