Marathon Patent amends Global Bit Ventures deal

IP licensing firm Marathon Patent Group, Inc. said it amended the terms of its pending acquisition of Global Bit Ventures Inc. (GBV), a digital asset technology company that mines cryptocurrencies.

Marathon said it will issue 70 million shares in purchase consideration instead of 126 million shares.

Marathon said its board determined there had been material changes in both companies’ operations since the original merger agreement was executed.

“Since then, the company leased 26,700 square feet of a purpose-built facility in Quebec, purchased 1,400 Bitmain Antminer S9 bitcoin miners and put such miners into full production,” said Marathon.

“The company also purchased four patents related to the transmission and exchange of cryptocurrencies between buyers and sellers.

“Additionally, the company now has $5,250,000 in cash.

“GBV closed a transaction with Alchimista Inc., a corporation organized under the laws of the Province of Ontario, which included the acquisition of GPU servers with 15,000 GPU cards, of which 11,100 are currently in production.

“The servers were paid for by GBV in the form of a convertible note which will convert to shares of the company’s common stock upon the closing of the merger with GBV.

“Such shares will come out of the 70,000,000 shares of the company’s common stock to be issued to GBV’s shareholders pursuant to the merger and, therefore, will not result in any further dilution to the ownership of the company’s shareholders.

“GBV and the company both entered into three-year master service agreements with BlockMaintain, Inc., an affiliate of Alchimista Inc, whereby BlockMaintain will run the day-to-day mining operations of GBV and the company and, after the merger, oversee all future expansion of the combined company’s mining operations.

“BlockMaintain is also implementing a rework of GBV’s current mining setup, hardware and software configurations.

“Post-acquisition of GBV, the company will operate under two facilities, one leased by Marathon Crypto Mining, Inc., and separately, the facility in which GBV operates.

“The combined 2,700 Bitmain Antminer S9 miners are expected to produce approximately 33 Ph/s of ASIC mining capacity in addition to GPU mining servers owned by GBV, comprised of 28,000 GPUs, which are capable of 630 Gh/s.”

Merrick Okamoto, Marathon Patent Group’s interim CEO and executive chairman, said: “Today’s announcement represents a substantial reduction of the price paid for GBV and 56,000,000 shares in reduced dilution to our shareholders.

“We would like to thank our partners at GBV for agreeing to this amendment and look forward to working together to grow our operations for the benefit of our shareholders.”