Squire completes first phase of CoinGeek blockchain cloud computing transaction and acquires asset management & pooling software

VANCOUVER, British Columbia, May 03, 2019 — Squire Mining Ltd. (CSE:SQR | FWB:9SQ | OTCQB:SQRMF) (“Squire”) announced that it has completed the acquisition of all of the outstanding securities of Freschette Limited (“OpCo”), which owns and operates a fleet of cloud computing assets in Kazakhstan representing 276 petahash/second (PH/s) of computing power. Pursuant to the share purchase agreement among Squire, OpCo and Mr. Calvin Ayre dated March 22, 2019 (the “Share Purchase Agreement”) Squire purchased OpCo for a purchase price of C$24.1 million (inclusive of operational prepayments and subject to post-closing adjustments) satisfied by issuance of an unsecured convertible debenture accruing interest at 15% per annum and due May 1, 2020. The debenture may be satisfied on maturity (or at any time after the date that is nine months following closing) in whole or in part, at the option of the holder, by common shares of Squire at a valuation of C$0.45 per share or, at the option of Squire (at any time after March 27, 2020), pursuant to a formula based on its then current trading price and subject to a floor of C$0.30.

At the time the Share Purchase Agreement was executed, the OpCo assets were cash positive after operational expenses (at then current market prices). The price of bitcoin has increased significantly since that time and management expects that OpCo operations will remain proportionately cash positive. Financial data with respect to cloud computing operations is expected to be made available in Squire’s second quarter financial statements.

The parties remain committed to completing the remainder of the acquisitions announced by way of Squire’s press release of November 30, 2018, as updated on March 25, 2018, in connection with an extension of exclusivity in respect of such negotiations until June 30, 2019.

Canaccord Genuity Corp. acted as financial advisor to Squire in connection with the transaction.

A copy of the Share Purchase Agreement will be filed under Squire’s profile on SEDAR.

In addition, Squire has entered into a perpetual license agreement for custom cloud computing management and pooling software and source code (together referred to as the “Software”) from a private development group based in the United Kingdom (“Licensor”).  In consideration of the license of the Software, Squire shall pay to Licensor the sum of £1,500,000, payable in four installments with the first payment due upon signing with the remaining installments payable every six months following.

About Squire Mining Ltd.

Squire is a Canadian based technology company engaged, through its subsidiaries, in the business of developing and operating cloud computing data infrastructure and system technology to support global blockchain applications related to Bitcoin SV, Bitcoin Core and other associated SHA-256 derived digital assets.

About CoinGeek Mining & Hardware

CoinGeek Mining & Hardware operates a global fleet of ASIC miners that contribute a significant portion of the hash power to secure and scale the Bitcoin SV enterprise‐grade blockchain. CoinGeek’s professional team has developed industry leading practices to ensure its mining fleet operates at maximum performance whilst optimizing its cost profile to maximize profitability.

The CSE accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes “forward-looking information” as defined under applicable Canadian securities legislation. Forward-looking information and statements include, but are not limited to, disclosure regarding possible events, that are based on assumptions about future economic conditions and courses of action. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, future demand for Bitcoin SV, Bitcoin Core and other cryptocurrencies and risks related to the mining thereof, integration issues, personnel and staffing requirements and technological change and obsolescence, the business impact of the perpetual license agreement for custom cloud computing management and pooling software and source code and risks as to whether the OpCo operations will remain proportionately cash positive. There are no assurances with respect to: the negotiation, entering into and completion of any definitive purchase agreement for any future asset acquisitions with Mr. Ayre or his affiliates (on the terms presently contemplated or at otherwise). Actual results and future events could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward-looking information. All forward looking information in this news release is made as of the date hereof and qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. Squire disclaims any intention or obligation to update or revise such forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Joe Chin on why miners should join SVPool: Like Bitcoin SV, we place miners first

Joe Chin on why miners should join SVPool: Like Bitcoin SV, we place miners first

CoinGeek Mining and Hardware CEO Joe Chin, in a recent presentation, enumerated the advantages of mining with SVPool as well as running Bitcoin SV.

Even with SVPool establishing itself among Bitcoin BCH miners soon after its launch last October, Joe Chin, CEO of CoinGeek Mining and Hardware, continues to think of how to draw miners in.

At the CoinGeek-sponsored Bitcoin Miners Choice Summit held at The Grand Harbour in Hong Kong last November 2, Chin discussed the advantages of mining with SVPool as well as running the Bitcoin SV. SVPool, a personal initiative of nChain Chief Scientist Dr. Craig Wright, is managed by CoinGeek Mining and proudly runs the Bitcoin SV full node implementation.

Chin told the audience, “Just because we launched [in October] doesn’t mean the work stops there. Almost on a weekly basis, every sprint, we’re adding new features. We’re also thinking of ways to incentivize miners who mine with us. We’re working on plans perhaps to give them access to the new miner hardware that we will release shortly.”

Chin also believes it’s important to remain receptive to miners’ needs regarding costs and payments. “[W]e also have feedback from miners, that many of them desire the steady income of PPS+ [pay per share plus], so we will be introducing that shortly. But I still believe that with zero fees, and if you have enough hash rate, you can actually do very well with the [current] PPLNS [pay per last N share]. And we’re also working on promotions and loyalty programs. So those will be announced in the very near future. So I encourage you guys to go to svpool.com/, and sign up. It’s very, very easy, so please do.”

Although coming to the mining pool scene rather recently, SVPool brings much experience in competing with other pools. “[W]e started a beta launch for invitation, customer only, in September, and that helped us debug the system… SVPool has a global infrastructure, but more importantly for a lot of you, it’s optimized for Chinese miners. So we have a node right inside China, so as to make sure you have the best, the most optimized performance. And of course, the whole purpose of SVPool is to run and support Bitcoin SV protocol. And also, we provide world-class bilingual customer service in Chinese and English, so it is very much, from your perspective, built for Chinese miners,” according to Chin.

He noted that SVPool supported the Bitcoin SV implementation, designed to maintain the principle of ‘longest chain wins’ as decided by users on their computers. SVPool, he said, “supports stable, scalable, and secure protocol, and it’s a professional Bitcoin platform, and it supports big blocks that are miner-configurable, and in the future, it will increase your revenue as miners.”

Chin said when the block reward halves in 2020, miners will want to make sure their earnings don’t take a hit. “[W]e will help you increase your earnings, even when we’re looking at the halving in 2020,” he said.

If you’re interested in learning more about Bitcoin SV and all the new developments in nChain, join the CoinGeek conference in London from November 28 to 30, with the special, invitation-only Miners Day event on November 27. It’s the perfect opportunity to meet the members of the BCH community and discuss not just the ongoing reality of Miners Choice for Bitcoin going forward but also why enterprise applications needing Bitcoin should stop moving in order for the ecosystem to grow. Also, join the (free) bComm Association and be part of the crypto revolution.