LUXXFOLIO to Launch Immersion Mining while Reducing Debt and Optimizing Operations

Rhea-AI Summary

On July 15, 2022, LUXXFOLIO Holdings announced the sale of 100 Petahash cryptocurrency mining machines, reducing its debt by approximately USD$3.2 million. Under a two-year hosting agreement, the Company will continue to mine bitcoin while securing steady revenue from hosting fees. The initiative aims to optimize operations amid market challenges. Company executives expressed a bullish outlook on bitcoin, emphasizing the strategic shift towards immersion technology to enhance mining efficiency.

Positive

• Sale of 970 cryptocurrency mining machines reduces debt by USD$3.2 million.
• Continued bitcoin mining under a two-year hosting agreement.
• Revenue generation from hosting fees.

Negative

• None.

VANCOUVER, BC, July 15, 2022 /PRNewswire/ - LUXXFOLIO Holdings Inc. (the "Company" or "LUXXFOLIO") (CSE: LUXX) (OTCQB: LUXFF) (Frankfurt/Berlin: LUH), the Company took another strategic step to optimize its operations. LUXXFOLIO recently closed the sale of 100 Petahash, or approximately 970 cryptocurrency mining machines (the "Miners"). As part of the sale, the Miners will continue to be hosted by LUXXFOLIO under a two-year immersion hosting agreement. The sale reduces the Company's debt by approximately USD$3,200,000, allows the Company to continue to mine bitcoin on the overclocked Petahash of the Miners placed in immersion, and provides the Company with steady revenues via hosting fees. The sale of the Miners is part of LUXXFOLIO's commitment to continue to optimize its business in the face of current market pressures.

"These strategic decisions we have made in light of current market conditions puts us in a stronger position to navigate going forward." stated Ken MacLean, President of LUXXFOLIO.  "We are entering a new segment of the mining industry by utilizing immersion technology to gain greater efficiencies from our current generation of miners. "

Kien Tran, COO of LUXXFOLIO, stated: "Our long-term outlook on bitcoin is bullish, and we believe our decisions provide us the best opportunity to participate in the Bitcoin mining industry and secure a slice of the world's largest and most secure decentralized monetary network. We are deleveraging and locking in a mix of steady revenues while still maintaining exposure to mining."

About LUXXFOLIO
LUXXFOLIO Holdings Inc. is a publicly traded, vertically integrated digital asset company based in Canada. It operates an industrial scale cryptocurrency mining facility in the United States powered predominately by renewable energy with a focus on the blockchain ecosystem and generation of digital assets. LUXXFOLIO provides a liquid alternative for exposure to digital assets for the broader capital markets.

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The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipated", "will be", or variations of such words and phrases or statements that certain actions, events, or results "will" occur. Forward-looking statements regarding the Company, its hosting operations, miners, and the Company's development of its growth strategy are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its subsidiaries to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures and other costs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

https://www.luxxfolio.com/

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SOURCE Luxxfolio Holdings Inc.

FAQ

What was announced by LUXXFOLIO on July 15, 2022?

LUXXFOLIO announced the sale of 100 Petahash cryptocurrency mining machines, reducing its debt and securing a hosting agreement.

How much debt did LUXXFOLIO reduce with the sale of the mining machines?

LUXXFOLIO reduced its debt by approximately USD$3.2 million.

What technology is LUXXFOLIO using to enhance mining efficiency?

LUXXFOLIO is utilizing immersion technology to improve mining efficiency.

What is the stock symbol for LUXXFOLIO?

The stock symbol for LUXXFOLIO is LUXFF.