ASX-listed internet venture builder Fatfish Internet Group, which targets consumer Internet, blockchain and cryptocurrency enterprises, has agreed to pay $1 million for the acquisition of a controlling stake of 51 per cent in Singapore-based startup APAC Mining.
The investment will be funded from existing cash reserves of Fatfish and will see Group CEO Kin Wai Lau and its director of crypto financial markets, Phillip Lord, join the board of APAC Mining.
APAC Mining was set up to invest and manage large-scale high-end computing facilities in Asia to conduct cryptocurrency mining.
Its first facility will be developed in Malaysia, which has a relatively low electricity tariff for industrial use. The company has proposed an active management strategy involving the mining of highly liquid cryptographic virtual currencies such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Monero and ZCash.
Investment proceeds from this will see APAC Mining procure computing equipment and establish a secure location for computing farms in Malaysia’s commercial centre of Kuala Lumpur. It also plans for an additional computing farm in Mongolia.
According to APAC Mining, 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.
Cryptocurrency mining involves the use of computing power to calculate complex mathematical solutions that underpin cryptographic digital token transactions on a blockchain network.
This computing power supports the distributed ledger that provides an accounting and verification of the various transactions of virtual currency tokens on the network, with the miners – those who submit computing power – earning transaction fees and receiving reward tokens from the blockchain network.
The ASX-listed venture builder has been building its cryptocurrency capacities in recent months. This latest investment in APAC Mining follows a seed investment Singapore-based Kryptos-X, a cryptocurrency exchange, as well as making an investment in CryptoFoundry.