(Sharecast News) - Quantum Blockchain Technologies raised £2m before expenses in a placing on Monday to fund its research and development programme.
The AIM-traded firm said the placing involved the issue of 133,333,333 new shares for 1.5p each.
It said the net proceeds would serve various purposes and primarily be channelled into its research and development.
The board said the investment would encompass expanding the research and development team, acquiring additional hardware resources, and intensifying software development efforts.
Additionally, some funds would address ongoing legal claims related to the company's legacy investments.
The remaining funds would be allocated for general working capital requirements, ensuring the company's continued operations and growth.
"We are extremely pleased to have completed this £2m fundraise, as we believe it will fund the company through to revenue," said executive chairman Francesco Gardin.
"The placing provides QBT with the opportunity to set up its cloud service infrastructure, most likely in North America, to enable the deployment of method A and method B as a software-as-a-service product for the bitcoin mining market."
Gardin said the firm predicted revenue would be generated either by charging subscription fees for each mining rig served or by sharing the extra mined bitcoins due to the miner using QBT's technology, or a combination of the two.
"We therefore believe that this opportunity significantly outweighs any short-term effect caused by the additional shareholder dilution."
At 1220 GMT, shares in Quantum Blockchain Technologies were down 11.81% at 1.5875p.
Reporting by Josh White for Sharecast.com.
Quantum Block (QBT)