Clear Leisure raises £1m to advance cryptocurrency plans
Shares in(CLP ) soared this morning after announcing that it had raised £1m at 1p a share with an individual investor, Mr John Story, thereby granting him an 11.14% stake.
The investment company detailed that the net proceeds of the placing will allow it to accelerate and widen the development of its latest plans within the cryptocurrency space.
The Group said the funds will enable it to expedite its efforts for cloud mining contracts with existing mining pool operators; enable it to finance the setup of a bitcoin mining operation in Italy as well as source economic renewable wind farms and hydroelectric energy.
The funds will also be used to build more replicas of its existing bitcoin cryptocurrency infrastructure in Serbia, enable it to finance innovative hardware solutions for crypto currency mining and allow it to directly move in the segment of new crypto validators.
Commenting on the raise, Francesco Gardin, Executive Chairman and CEO of Clear Leisure said, “I am very pleased to be able to welcome John Story as a substantial shareholder in Clear Leisure and have direct access to the exciting technologies he has recently invested into, which could be extremely beneficial to our new cryptocurrencies initiatives.”
Today’s raise follows another recent raise by Clear Leisure announced last week. The Group unveiled that it had raised £0.68m at 0.60p to fuel its working capital purposes as well as for selective further investments in the Company’s growing portfolio of technology businesses.
It said the funds would “substantially increase the necessary and material computing power in our crypto currencies data centre, to make it a competitive business, once relocated.”
Gardin said the second use of the funds for the Group will be “to complete the preparatory work for the launch of the Company's previously announced EIS Investment Fund.”
He added, “It also gives us sufficient resources to support our current investment portfolio, if and when required, as well as looking at new and exciting technology opportunities."
Shares in Clear Leisure have seen an over four-fold increase since the beginning of 2021. The stock soared by 76.00% in value to 2.25p this morning following the news of the placing.
Today’s proposed acceleration of the Group’s plans into the cryptocurrency space comes as Bitcoin continues to hit record highs having broken through $50,000 (£35,700) last week.
Tesla’s $1.5bn investment had already sent prices in the cryptocurrency to a new record in recent weeks, rising as much as 16% to a high of $44,795.20 according to Bloomberg data.
Cryptocurrency prices now continue to rise after Tesla’s CEO Elon Musk unveiled the investment and revealed that he believes bitcoin is on the “verge of broad acceptance”.
It was reported today that the cryptocurrency has now risen by more than 90% in value since the start of January 2021, thereby pushing its total market value above $1 trillion.
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