CALGARY, Alberta, July 05, 2018 (GLOBE NEWSWIRE) -- Vogogo Inc. (CSE:VGO) (“Vogogo” or the “Company”) is pleased to announce that it has entered into a co-location agreement (the “Agreement”) with a third-party cryptocurrency customer to host 4,000 miners, which is expected to generate annual revenue to the Company of up to CAD $6.75 million.
As previously announced, the Company has completed the acquisition of 14,000 cryptocurrency mining machines plus supporting infrastructure. As part of that acquisition the Company also acquired infrastructure to support an additional 4,000 miners. Hydro Quebec has confirmed the hydro power for the facility forms part of the 120 megawatt block that is approved for blockchain use.
"We have entered into the cryptocurrency blockchain space through a mining vertical, which now includes over 18,000 cryptocurrency miners for our own account and a co-location business that will host 4,000 miners. Co-location is an important step in our diversification strategy, as the revenue is not subject to cryptocurrency price fluctuations,” said John Kennedy FitzGerald, President and Chief Executive Officer of Vogogo. “In addition to the development of other blockchain verticals, we are pursuing our previously announced option to acquire infrastructure to support an additional 35 megawatts of power, which could be used to mine for our own account, co-location or cloud mining initiatives,” added Mr. FitzGerald.
About Vogogo Inc.
Vogogo currently operates its cryptocurrency mining activities in Québec. This includes mining for cryptocurrencies for its own account and within mining pools. As it continues to embrace blockchain technology, Vogogo is exploring opportunities in all aspects of the cryptocurrency segment.
For further information please contact:
Jordan Greenberg
Chief Financial Officer
403-648-9292
Cautionary Note Regarding Forward-Looking Information
Certain statements in this document, including statements with respect to the revenue impact of the co-location agreement, the timing for all co-located mining machines to be fully operational, and the timing of the exercise of the Company’s option to acquire another 35 MW of supporting infrastructure, contain forward-looking statements which can be identified by the use of forward-looking terminology such as "believes", "expects", "may", "desires", "will", "should", "projects", "estimates", "contemplates", "anticipates", "intends", or any negative such as "does not believe" or other variations thereof or comparable terminology. No assurance can be given that potential future results or circumstances described in the forward-looking statements will be achieved or will occur. By their nature, these forward-looking statements necessarily involve risks and uncertainties, including the risk that costs will be higher than anticipated reducing margins, that the rental income is negatively impacted by the risk that the Company does not meet its obligations under its service level agreement, the risk that the co-location agreement is terminated, that the co-located mining machines take significantly longer to be fully operational or that the price of power to the Company increases and other risks and uncertainties discussed herein, that could cause actual results to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to future events, and are based on information currently available to the Company and on assumptions, which it considers reasonable, including that the revenue from the co-location agreement is that set out in the co-location agreement. Management cautions readers that the assumptions relative to the future events, several of which are beyond Management's control, could prove to be incorrect, given that they are subject to certain risk and uncertainties, and that actual results may differ materially from those projected. Other factors which could cause results or events to differ from current expectations include, among other things, the impact of general economic, industry and market conditions. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.