Cryptocurrencies are moving lower on Thursday following the latest round of threats from Asia that China wants to shutdown bitcoin mining and South Korea wants to ban bitcoin trading.
The reality is that that's not really big news, both countries have been complaining about it, especially China because of the large number of miners and massive amounts of electricity those miners consumer. However, every ripple in the bitcoin pond turns into a wave that rolls across the entire sector.
The overseas news isn't bothering United American Corp. (OTCPK:UAMA), whose shares are climbing on news that its wholly-owned subsidiary United Blockchain Corp. has acquired a second data center facility in the West Island area of Montreal, Quebec for use as a cryptocurrency mining center by its division Blockchain Data Centers.
The Miami-based company says the facility should have capacity to host over 100 servers, subject to overall air conditioning and ventilation performance.
The plan is to sell/lease mining servers to individuals and commercial miners, with Blockchain Data Centers managing operations and collecting a share of revenue.
In a recent test run of its own custom-built 13 GPU-based Ethereum mining rig, the company successfully ran the rig uninterrupted for 30 days at a hash rate of 400 Mega Hash per second. Using an independent third party mining pool, the company collected two ETH (Ethereum's cryptocurrency) coins, with an estimated value of $2,225 U.S. Management said they dealt with Ethereum network difficulty during the trial.
The odds of China putting an end to mining operations is highly unlikely to happen. If by some chance it did, it creates a whole lot of market opportunity for miners outside the country given the large amount of Chinese miners with extensive operations collecting the lion's shares of rewards for solving and storing blocks.
Perhaps investors are seeing this side of the coin, bidding up shares of North American miners, even though UAMA is relatively small and its stock carries the dreaded "buyer beware" skull and crossbones on the OTC Markets Group website due to lack of transparency. Shares are up 15.1% at 23 cents as of 1 p.m. EST on Thursday.
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