Business
Investment of £200,000 in Argo Blockchain plc
Investment of £200,000 in Argo Blockchain plc.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 9477D Vela Technologies PLC 05 February 2018 \n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (\"MAR\"). With the publication of this announcement, this information is now considered to be in the public domain.\n5 February 2018\nVela Technologies plc\n(\"Vela\" or the \"Company\")\nInvestment of £200,000 in Argo Blockchain plc\nIntroduction\nThe Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to announce that the Company has invested £200,000 to acquire a minority equity stake in Argo Blockchain plc (\"Argo Blockchain\") (the \"Investment\").\nVela has subscribed for 2,500,000 shares in Argo Blockchain, at a price of 8 pence per share. The Investment by Vela has been funded from the Company's existing cash resources. The Investment by the Company is part of a larger fundraise which was completed by Argo Blockchain on 2 February 2018 and which raised £2.5 million for the company on a pre-money valuation of £8.0 million (the \"Fundraise\"). Following completion of the Fundraise, Vela is interested in approximately 1.9 per cent. of Argo Blockchain's share capital.\nBackground to Argo Blockchain\nArgo Blockchain is a recently incorporated private company whose business activities will be focused on Mining as a Service (MaaS) which enables its users to access blockchain mining rigs and carry out cryptocurrency mining without the need to acquire, configure and maintain complex mining hardware. Until now this process has been reserved for those with a strong technical background and the resources to buy large amounts of server space.\nCryptocurrencies operate on a distributed ledger called a blockchain. In order to update the blockchain with transactions (transfers of cryptocurrency) computing power is needed to aggregate transactions and form them into blocks which comply with the rules of the relevant blockchain. Cryptocurrency mining is the process of aggregating the transactions into blocks and adding them to the blockchain. \nThe creation of a block requires the transactions to be cryptographically 'hashed' which creates a fixed length alphanumeric string which can easi...