Pierre Enterprises Ltd. (OTCMKTS:PRELF) is a stock on a major run in the blockchain space. Shares have blasted higher in a big way over recent months, launching from an illiquid $0.65/share back in mid-September to a stunning $3/share just over a month later. Of course, the culprit to explain this advance is the singular thematic excitement around the blockchain space.
The company just added to that excitement by letting the world know that it has entered into a legally binding letter agreement dated October 23, 2017, with its largest shareholder Genesis Mining Ltd. under which the Company will finance the construction of a cryptocurrency mining data center in Sweden. “The Sweden Data Centre will be a newly constructed GPU mining facility with an anticipated completion date of December 2017. The Company’s cryptocurrency mining capacity or hash power is expected to increase by approximately 175% with the addition of the Sweden Data Centre.”
Pierre Enterprises Ltd. (OTCMKTS:PRELF) trumpets itself as a company building a bridge from the blockchain sector to traditional capital markets.
HIVE is strategically partnered with Genesis Mining Ltd., the world’s leading cryptocurrency mining hash rate provider, to build the next generation of blockchain infrastructure.
HIVE owns a state-of-the-art GPU-based cryptocurrency mining facility in Iceland, completed in May 2017, which produces mined cryptocurrency like Ethereum around the clock. HIVE has an option to acquire four additional facilities in Iceland or Sweden from Genesis. Genesis supports HIVE with data center infrastructure know-how and is HIVE’s largest shareholder.
According to company materials, “HIVE Blockchain Technologies Ltd. is a growth-oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based cryptocurrency mining facilities in Iceland, which produce mined cryptocurrency like Ethereum around the clock.”
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As noted above, PRELF is the next in a line of amazing cryptocurrency and blockchain-related stocks on the OTC to vault into orbit in recent weeks, which is the second wave of such movement so far this year. The company’s announcement that it is upping its mining capacity is certainly relevant to that story and fuels further speculation about its place in the crypto space.
As the company notes, the Sweden Data Centre will be constructed by Genesis for consideration of an estimated US$22 million. Pursuant to a master services agreement between the Company and Genesis, Genesis will be responsible for hosting, maintenance and related services for the Sweden Data Centre for a monthly fee.
According to the release, “completion of the acquisition is subject to a number of conditions, including but not limited to, acceptance by the TSX Venture Exchange as required. There can be no assurance that the acquisition will be completed as proposed or at all.”
Harry Pokrandt, CEO and President of HIVE stated “With the help of Genesis, Sweden represents the next stage of growth for HIVE as we continue to build our portfolio of mining facilities. HIVE is acquiring a facility in a politically stable country with access to excellent infrastructure and complements our existing facilities in Iceland. We will continue to evaluate other opportunities to ensure we provide our shareholders the best exposure to the blockchain and cryptocurrency.”
Traders will note 47% during the past month in terms of shareholder gains in the company. This is emblematic of the stock. PRELF has a history of dramatic rallies. Moreover, the company has benefitted from a jump in recent trading volume to the tune of 11% above the average volume levels in play in this stock over the longer term.
At this time, carrying a capital value in the market of $239.1M, PRELF has virtually no cash on the books that we could find, which compares with virtually no total current liabilities according to the data presented on financial sites we explored. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $PRELF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PRELF, either long or short, and we have not been compensated for this article.