PHILADELPHIA, PA / ACCESSWIRE / May 8, 2019 / Integrated Ventures Inc (OTCQB: INTV) (“Company”) is pleased to announce a signing of a Hosting and Marketing Agreement with PetaWatt Properties, LLC. As result, the previously contemplated transaction to acquire Erie Power, LLC has been terminated, due to (1) need for a significant capital requirements to re-start plant and build out mining infrastructure, (2) up to 6 months time line for launch of mining operations, (3) need for a significant dilution due to the recent stock pricing weakness and (4) company’s ability to secure a similar deal, in terms of power cost, without any additional investment.
On May 7, 2019, Integrated Ventures has signed a three-year Agreement with PetaWatt Properties, LLC, which will allow Integrated Ventures (1) to consolidate and streamline all mining operations (NC, PA and NJ) into one location, (2) to eliminate Company’s lease obligations and payroll expense and (3) to lower its power costs by over 50%, thus greatly enhancing mining profitability and long-term viability.
In addition, Integrated Ventures intends to market PW’s services to diversify its business by offering hosting and pool services via a la carte packages to third-party miners and market participants.
> Crypto Market Is Coming Back!
Digital currencies are an emerging asset class underpinned by blockchain, a transformational technology with use cases in virtually every industry.
After experiencing historic growth (growing from a $7 billion market cap in January 2016 to a more than $600 billion market cap by late 2017), the cryptocurrency market entered a bear phase.
However, recovery has been strong in recent months, with Bitcoin’s value increasing nearly 70% from December 2018 to May 2019.
Growing Institutional interest, a low cost of mining equipment and ROI are key factors for investment at these levels.
> Business Strategy
The company has formulated and plans to execute a 6 step plan, designed to position INTV for the next bull cycle:
- Operational Restructuring. To streamline and improve profitability of current operations, the company is switching from warehouse mining to third party hosting model, based on monthly flat fee and resulting in elimination of all major expenses such monthly lease, payroll, etc. All mining equipment (775+ rigs) is scheduled to be connected by May 30th.
- Securing Competitive Electricity Rates. By partnering with PetaWatt, Integrated Ventures will secure access to a lowest power pricing structure.
- Generating Cash Flow via Hosting & Mining Revenue Share Services. Integrated Ventures intends to generate significant revenue through reselling of hosting and revenue share services.
- Locking-In Record Low Hosting Rate. Newly secured Integrated Ventures’ access to the most competitive power cost, will allow the company to utilize and market one of the the most competitive hosting rates in the industry, thus driving profitability and demand for long-term hosting contracts.
- Implementing All-In-One “Plug-and-Mine” Mining Solution. Integrated Ventures will offer clients an access to best hosting and pool rates for ASIC and GPU miners, creating a “We Work” -style turn-key mining option for miners seeking a fast market entry combined with a cost effective hosting and pool space.
- Purchasing Discounted Mining Rigs from Secondary Markets. Integrated Ventures will keep costs low by purchasing equipment on the secondary market, a strategy that was not possible when the market was in its infancy.
> Why Ramp Up Now?
MarketStability: Bitcoin, and the broader crypto market, have been in recovery following a prolonged bear cycle. Bitcoin has risen from a low of $3,200 in December 2018 to roughly $6,000 in early May, 2019. The cryptocurrency sector market cap has risen from roughly $100 billion to $190 billion over the same period.
GreatPoint & Less Competition: The cryptocurrency market’s performance in 2019 indicates a reversal has occurred. However, the markets current total value is still less than 1/3rd of its value in January 2018. Additionally, the bear market was responsible for significant miner attrition. Competition has eased, creating greater profits for those still mining.
Integrated Ventures will grow and earn revenues as follows:
- Mining. Currently,PetaWatt facility has up to 120MW capacity. Each 1 MW can power up to 650 rigs. At today’s crypto prices, each rig can generate between $1.75 and $5.00 in profit per day, mainly due to the low electricity cost.
- Plug & Mine Hosting and Pool Solution. Integrated Ventures will offer long-term contracts for hosting services on monthly or revenue share basis.
Integrated Ventures will have reliable long-term access to inexpensive electricity through its three-year agreement with PetaWatt. An access to the low cost power is the key that will allow Integrated Ventures to mine far more profitably than most of its North American competitors and provide hosting services at the market’s most competitive price point.
Cost certainty, created by uninterrupted access to affordable power, will allow Integrated Ventures to incorporate all of the above strategies into our business model.
The model allows Integrated Ventures to weather market downturns better than its competitors, while also positioning the company to earn significantly higher returns than its competitors during bull cycles.
Finally, Integrated Ventures will operate and host both ASIC and GPU mining equipment. The importance of this is the flexibility it provides.
- ASIC mining is chip-based, and faster than GPU mining, but costlier.
- GPU mining is graphics-card based, more flexible than ASIC mining, and less costly.
AboutIntegrated Ventures Inc: The Companyoperates asTechnology Holdings Company with focus on cryptocurrency sector. For more information, please visit company’s website atwww.integratedventuresinc.com.
AboutPetaWatt Properties, LLC:
Located in upstate NY,PetaWattis a vertically integrated energy, facilities & service provider to high demand energy consumers, such as blockchain cryptominers, hydroponic operators and data centers. PetaWAtt focuses on developing local smart energy hubs -a mix of data centers, hydroponic produce operators and cryptominers. PetaWatt provides the necessary infrastructure to support our clients’ hardware. In an environment of shifting energy rates, tariffs and regulations, we manage all ancillary services, including power and HVAC, allowing clients to focus on their businesses. By partnering with PetaWatt, Integrated Ventures gains access to the low cost power pricing, which is among the world’s lowest. In addition, PetaWatt’s existing infrastructure can easily support an expansion of Integrated Ventures mining operations. For more information, please visit company’s website at www.petawattgroup.com.
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, and various other factors beyond the company’s control.
Steve Rubakh, CEO
SOURCE: Integrated Ventures Inc.