Fatfish Internet Group (ASX: FFG) has agreed to invest US$1 million into cryptocurrency mining startup APAC Mining Corp, which was established in Singapore to invest and manage large-scale advanced computing facilities in Asia for cryptocurrency mining.
The investment will give Fatfish a 51% controlling stake in the startup and the ability to appoint two directors to APAC Mining’s board, which will be Crypto Financial Markets director Phillip Lord and Fatfish chief executive officer Kin Wai Lau.
Fatfish will use its existing cash reserves to fund the transaction.
For those unfamiliar with cryptocurrency mining, it is a process where computing power is used to calculate the complex mathematical solutions needed to confirm cryptographic digital token transactions on a blockchain network. In other words, the computing power provides an accounting service and verifies transactions.
Those submitting the computing power for the transactions can earn a transaction fee and receive reward tokens from the blockchain network.
APAC Mining will use the US$1 million to procure computing equipment and set up a secure location with the first two computing farms to be established in Kuala Lumpur in Malaysia to take advantage of the country’s lower industrial electricity prices. Operations in the region are scheduled to start within the next two weeks.
A further computing farm is planned for Mongolia in the near future, which also has lower electricity rates.
Initially, the Malaysian computing farms will have hashpower up to 4,500 trillion hashes per second to enable it to mine 150 units of Bitcoin Cash tokens a month.
APAC Mining will actively manage and seek to enhance efficiencies for mining cryptographic tokens like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, ZCash and Monero.
Fatfish is an internet development investment vehicle that teams up with entrepreneurs in the consumer internet, blockchain and cryptocurrency spaces.
The company has existing partnerships with multiple startups including Tony Mackay’s cryptocurrency startup Kryptos-X which is establishing an online virtual currency exchange.
Shares in Fatfish soared more than 30% in trade to sit at A$0.10 during early afternoon – a 28% increase on yesterday’s closing price.