The Quantum Blockchain Technologies PLC (LON: QBT) share price plunged 14.6% after announcing that it had difficulties designing chip improvements for Chinese-manufactured Bitcoin mining rigs, accounting for nearly three-quarters of the global mining industry’s mining capacity.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The disruptive software and ASIC chip developer noted that it had been engaging with North American manufacturers of Bitcoin mining machines, where they provided it with several of the most commonly used mining rigs available in the market for the Company to study and implement the porting of its Method A and Method B chip enhancements.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading stocks, forex, cryptos, and beyond. Dive in and test their capabilities with complimentary demo accounts today!
- eToro Top stock trading platform with 0% commission – Read our Review
- Admiral Markets More than 4500 stocks & ETFs available – Read our Review
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Quantum Blockchain noted that the unavailability of technical documents concerning the mining machines produced by Asia-based manufacturers meant the company faced a significant software engineering challenge.
However, through the partial redesign of Method B, the Company can start porting on the equipment made by the largest mining rig manufacturer in that region. The Company's R&D Machine Learning team has quickly modified Method B while retaining its performance enhancements, as confirmed through internal testing by the R&D team.
As a result, the Company is looking to engage with potential partners to deploy Method B in Chinese-produced mining rigs. Installing QBT's Method B on Chinese manufactured rigs is anticipated to increase the success rate of the mining probability of these machines by 2.6 times.
Because of the intrinsic nature of Method B, to achieve the same mining success rate, a mining company would have to increase its hashing power by 50%. Therefore, installing Methods B and A onto the machines would save miners significant costs.
Francesco Gardin, CEO and Chairman of QBT, commented: “QBT has now entered into the engineering phase of its first two products: Method A, which our laboratory tests show an increase in the mining performance by nearly 10% and Method B, which increase the mining probability by 2.6 times. The overall response from the North American miners has been encouraging; by increasing the hashing power, without increasing CAPEX, could, in their view, be a game-changer, especially in the current market, where the price of Bitcoin has fallen below
$30,000 and with the next ‘halving' expected in about nine months.”
Quantum Blockchain (QBT) share price.
The Quantum Blockchain (QBT) share price plunged 14.63% to trade at 1.05p, from Tuesday’s closing price of 1.23p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.