We’ve run across a fair few companies recently which have been trying to diversify into the bitcoin business, and Santo Mining Corp (OTCMKTS:SANP) is the one we’ve most recently noticed, which incidentally happens to have ties to the cannabis sector; one of our favorite market spaces.
Prior to this week’s announcement the company was, through its Podwerks subsidiary, primarily engaged in the manufacturing of modular container spaces for the co-working and cannabis industries in the United States. Using proprietary technology, Podwerks develops full spectrum grow pods designed and built to withstand sub-zero temperatures.
Then we learned that Santo Mining Corp (OTCMKTS:SANP) (Podwerks) and Chongqing Yuhuan Technology Co., Ltd. (operating as “Canoe Pool”), had signed a letter of intent ahead of executing a definitive agreement to merge the two companies. The merger will result in a new entity called Canoe Pool America, focused on developing and expanding the U.S. operations for Canoe Pool’s bitcoin mining operations. Once the merger agreement has been executed Canoe Pool is to receive 150 million shares of SANP preferred stock, representing 35% of SANP post-merger stock. An additional 50 million shares of preferred stock will be issued upon achievement of certain Bitcoin mining milestones, for a total of up to 40% of SANP post-merger stock. Canoe Pool will be given three director slots to the SANP Board of Directors. The transaction is expected to be finalized within the next 4-6 weeks.
“The U.S. market presents a tremendous opportunity for us to grow into a Bitcoin mining powerhouse. We’re currently experiencing a U.S. led paradigm shift in acceptance of crypto currency markets through regulation. This is good news to the mining community in China looking to expand overseas. We are still facing great uncertainties at home about the future of digital currencies. Mining is not immune to it,” says Ang Li, Chairman and CEO of Canoe Pool. “Through our partnership with Podwerks we feel confident we can begin building our first mining pods by the end of the year. We look forward to working together and generate more profits for our shareholders. After all, we will soon be a publicly traded company,” added Li.
Canoe Pool has been experiencing rapid growth with two state-of-the-art mining facilities in central and northwest China. Their latest mining farm in Xinjiang, China is a partnership with Beijing-based Bitmain Technologies Ltd., the world’s largest bitcoin mining organization.
Canoe Pool has been led by its founder Ang Li since 2013, and is one of the fastest growing bitcoin mining companies in China with two large-size mining farms in Sichuan and Xinjiang, China; and with a total capacity of 75 thousand kilowatts, accommodating up to 50 thousand of the latest Bitmain S9 mining machines. Canoe pool has a total hashrate potential of 700P. Miners can choose between PPS or PPLNS payment systems with fees of 2% or 4%, accordingly. Canoe Pool currently supports Bitcoin Unlimited and represents 1.7% of the global crypto currency mining market share. (Source: Accesswire)
It’s no secret that cryptocurrency is one of the newest, most interesting market spaces, and SANP has followed suit with many other companies looking to get a piece of the ‘virtual mining’ business. Mining for bitcoin isn’t like printing money , but an endeavor that requires know-how on the efficient expenditure of significant resources. By teaming up with Canoe Pool, the resulting business will already be a step ahead in that regard. We’ll be anxious to hear of a definitive deal that makes the merger plan official. We’ll stay up on any further developments with SANP and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in SANP stock, short or long.