KUALA LUMPUR, March 8 (Bernama) -- Arbitrade Exchange Inc., a cryptocurrency exchange and mining company, will acquire its partner company, Cryptobontix Inc., in an acquisition that will be completed later this month.
Arbitrade's management, having built the board of both companies, will now operate both entities as one operation, with the same management and board of directors.
Cryptobontix is the owner/operator of five digital cryptocurrencies that will be backed by gold, other bullion, other cryptocurrencies and cryptocurrency mining.
The first four tokens in that which Cryptobontix refers to as their Ingot Family of Tokens is Dignity (DIG, formerly Unity Ingot UNY), Namaste (NAM), Orectic (ORE), and Honor (HNR).
Each of these four tokens will commence operations starting with 5,000 mining rigs each and the company hopes to have all 20,000 in operation not later than May, this year.
The company uses 50 per cent of daily mined proceeds to pay for the backing of the token, whether bullion or alternative cryptocurrencies, while 20 per cent is used to purchase more mining rigs to create a growth factor, 15 per cent is used to support the token's markets and a further 15 per cent for operational expenses.
The company expects to have over 1,500 cryptocurrency mining rigs operating online by April 1, 2018. At today's earnings and current cryptocurrency prices, the mining rigs have the potential to generate approximately US$250,000 per month, according to the company's mining consultant.
Arbitrade is aggressively seeking as many cryptocurrency mining rigs as possible to fulfil all 40,250 rigs planning to officially launch the entire operation.