After hitting the Tel Aviv Stock Exchange Bitcoin Mania Natural Resources looks like small change. Even though the price of Bitcoin has move u more than three times in the last two months Natural resources company has soared 51-fold over that period.The company which invests in mining Gold and iron made a decision to change its strategy to start mining cryptocurrencies. The past week the company acquired about 75% of a Canadian cryptocurrency miner company called Backbone Hosting Solutions.
This news about Natural resources has seen its stock price keep rising. In the last few days, it was at 100%. A company that was ending a few days ago has a very high market value. In fact, it’s now topping 1 billion shekels which are higher than El Al Israel Airlines. Currently, Natural Resources is up at 48% with a market value of about 825 million shekels.
The company has been doing very in cryptocurrency mining. Up to 5th December, the company mines 390 bitcoin, 319 Bitcoin cash, 1,434 Lightcoin, 147 Ethereum and 54 Dash. In its financial report, Natural Resources added Cryptocurrencies worthy about $4 million within a month.
It already has four server miners, and the company which is operating under Backbone is officially the biggest Bitcoin miner in North America. Natural resources are operating at lower costs in Canada because of the low costs of electricity and more to that temperatures are low there. Unlike in the US where it incurred costs of about $1.8 million in expenditure, in Canada, it used only $521,000.
In the acquisition, Natural Resources will have to give 75% shares to Barknone’s shareholders. This will be done through new shares placements of about 50 million shares. Natural Resources shares count at about 14.7 million and are expected to rise to 17 million.
After the shares placement is over, Tel Aviv Stock Exchange will allow Natural Resources to operate as a new company since it offered more than 75% of its shares. This will mean at the start of trading the stock will start trading at par value.
If the Backbone’s shares decide to hold to the Natural resources shares, then the shares in the Tel Aviv Stock Exchange will move to 67 million shares and will trade at 12.30 Shekels. In the first day of trading, the trading may not happen as it will be negotiations between bi prices and offer prices. Natural resources shares are likely to close at par or at a market valuation of the 67 million Shekels.
Reflection to Cryptocurrency market
With a company like Natural resources moving from the mining of iron and Gold to Cryptocurrency mining, this shows you how the market is growing. It’s expected that Cryptocurrency market will continue to grow especially now that companies have started offering futures.