RE: Disruptive Crypto IP at QBT8 Jun 2021 20:38
That is a good summary FigTreeHarry, albeit the authors timings are a bit off imo. My key takeaways from it include this expert getting his shares at 5p and QBT's focus on energy efficiency being timely:-
The identity of the ‘expert’ is not known, as according to Quantum they have requested anonymity, but as part of the one-year service agreement, the consultant has been awarded share options of over 10 million new ordinary shares of 0.25 pence each in the company, at an exercise price of 5p each, which can be exercised between 15 February 2022 and 15 August 2022.
The consultant will push Quantum’s R&D effort, with a focus on developing advanced proprietary techniques for Bitcoin mining. CEO Francesco Gardin believes there are ‘tangible and disruptive optimisations’ that could result in faster processing and energy saving, and he intends to apply for patents over any intellectual property generated from the process. Gardin says already existing optimisations are expected to be made available within the next three months, with more to come in the course of the next 12 months.
Quantum’s focus on energy efficiency is timely. The sector’s extremely high level of energy consumption has long been seen as unsustainable, particularly against a backdrop of G7 governments pushing for zero carbon footprints. But the issue was brought sharply into focus thanks to a tweet from Elon Musk on 12 May, who suspended Tesla vehicle purchases with Bitcoin and declared he was “looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction”. In the following week, shares in Bitcoin tumbled some 40% from a peak of $63,500.
Cryptocurreny energy consumption is now a priority
Further turbulence for the sector may be just around the corner, now that China (where it is claimed 65% of Bitcoin mining is conducted because electricity there is cheap) in May officially declared it will “combat mining and trading of Bitcoin”. It is too soon to know what policy action will follow from this statement, but for the sector the need to reduce energy consumption has suddenly become a priority.
No surprise, then, that Quantum and others in the sector are looking at more sustainable and energy efficient solutions.
Sign In
Follow the stocks
