Tech investor Fatfish Internet Group will invest A$1.27 million in a Singapore-based cryptocurrency mining start-up with the market welcoming the news.
The ASX-listed company will take a 51 per cent slice of APAX Mining, a start-up involved in investing, leasing and managing computing facilities in Asia for cryptocurrency mining.
Shares in Fatfish jumped 1.7c, over 20 per cent, to an intraday high of 9.9c on the news.
Cryptocurrency mining is the process of using computers to calculate complex mathematical solutions, enabling the confirmation of a cryptographic digital token transaction on the blockchain network in order to earn a transaction fee and in-built reward tokens.
APAC Mining will set up its first computing farm in Malaysia to take advantage of the relatively lower electricity tariff for industrial use in the country.
It will take on an active management strategy to optimise yield by mining popular cryptographic tokens that are well traded on international exchange, such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, ZCash and Monero.
The investment will be used principally for purchase of computing equipment and set up of secured location for housing the computing equipment.
The company will use its existing cash reserves to fund the investment.
The investment in APAC Mining is in-line with FFG’s vision to be the leading technology venture investment and development firm that leads investment into disruptive technology space across consumer and business markets.
Today’s news comes after Fatfish recently invested in Kryptos-X cryptocurrency exchange and Altairian Holdings.