Quantum Blockchain halves loss in H1, readies tech that improves bitcoin mining by 2.6x
() , a technology company focused on quantum computing, blockchain, cryptocurrencies and AI, announced unaudited interim results for the 6 months ended 30 June 2023 (H1 2023).
Quantum halved its operating loss to €1.2m from €2.1m a year ago as it significantly reduced expenses. Net current assets increased to €4.8m from €4.4m on December 31 2022, and net liabilities remained broadly unchanged at €3.1m.
During the half, Quantum continued its R&D efforts to improve the efficiency of bitcoin mining by exploiting predictive properties in the operation of bitcoin's SHA-256 cryptographic hash functions - an area that is not being meaningfully addressed by other companies in the market at the moment.
Specifically, in H1 announced that its Machine Learning teams had developed two unique methods (named "Method A" and "Method B") that could lead to significant performance improvements for existing BTC miners, implemented entirely in software. A third "Method C" is currently in development.
Method B was shown to increase the rate of successful bitcoin mining by approx. 2.6x compared to standard BTC mining industry practices over the same period. The algorithm also reduced electricity consumption by 4.3%. Quantum is now focused on finalising the software that will permit these methods to be widely deployed to existing miners. This should represent a major near-term value inflection point for the company. said it is in discussions with several of the largest North American cryptocurrency miners who have provided it with some of their most commonly used mining rigs to implement porting of Method A and Method B.
Quantum also expects the aforementioned improvements to extend to mining of Bitcoin's main forks - Bitcoin Cash (BCH) and Bitcoin SV (BSV) without significant additional R&D effort, expanding the company's target market accordingly.
Separately, Quantum is developing its proprietary quantum version of SHA-256 aka the Quantum Mining Algorithm, which is a translation of the bitcoin mining algorithm for quantum computers. Currently no quantum computers exist with sufficient qubits to run 's quantum algorithm, but as quantum computing grows and those chips become available, should be in a highly advantageous position to supply the algorithm to parties interested in mining bitcoin with quantum computers.
Finally, continued its endeavours to recover damages and legal expenses from its legacy legal actions taken in Italian courts where it was awarded €6.2m last November in a case against Sipiem. No progress was reported in today's release, which explains this morning's price movement.
In summary, remains focused on 2 main areas - its ambitious R&D programme, and commercialisation of already mostly developed assets Method A and Method B that can dramatically improve bitcoin mining performance through software optimisations. This should allow Quantum to capture significant market opportunities in the bitcoin mining market in the near term. In the longer term, the company expects to develop its own efficient mining chip while waiting for quantum computing to catch up to its algorithm.
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