LONDON — Goldmines International Ltd.
(LPI) said Monday it will merge with rival Litecoin-focused mining operation Goldmine Lodge Ltd.
in a bid to bolster its business in the emerging market.
The transaction will see LPI, a British cryptocurrency exchange and mining operator, merge with Goldmine Lodges Ltd., which is based in Australia.LPI will hold 51.5% of the voting power in the new entity, while Goldmine will hold 33.5%.LPI Chief Executive Patrick McInerney said the merger is part of a broader strategy to diversify its business and broaden its market presence in Asia, and he praised Goldmine for its growth in Asia and the US.
The proposed transaction will not create any new debt for Goldmine, McInnerney said.
Litecoin mining and exchange platform Goldmine operates in a different way from other Bitcoin-based cryptocurrency mining and mining services.
It does not require mining rigs, has no fixed exchange rate and offers only a limited number of mining options to miners, including using hardware mining software.
The company also charges a fee of 0.5 BTC per block, and has launched a mobile app to help miners make sure they get a payment in time.
Goldmine is also the first mining company to integrate the Litecoin network into its product offerings.
It plans to start using the Litecoins mined in the Bitcoin network to fund its business by the end of 2020.LPC is an Australian-based bitcoin exchange, which trades on the New York Stock Exchange under the ticker symbol LPC.
Goldmine is a London-based mining operation, which operates in Hong Kong.
The LPI transaction is part, the company said in a statement, of a strategy to provide greater value to customers by leveraging their expertise in digital currency mining.
The deal is expected to close in the second quarter of 2021.LPi also said it is planning to introduce new technology products and services to enhance the Goldmine services it offers to the crypto mining community.