REG-Quantum Blockchain Technologies Plc: Porting of Methods A & B

Quantum Blockchain TechnologiesAnnouncement

20/09/2023 07:15

 

Quantum Blockchain Technologies Plc

(“QBT” or “the Company”)

 

Porting Method A and Method B into Commercial Miners

 

 

HIGHLIGHTS
* Engaging with North American cryptocurrency miners
* Redesign of Method B for Chinese manufactured mining machines, which opens
up a further 75% of total bitcoin mining market for QBT
* Method A increases mining performance by nearly 10%
* Method B increases mining probability by 2.6 times
 

Quantum Blockchain Technologies Plc (AIM: QBT), a disruptive software and ASIC
chip developer focused on changing the way Bitcoin is mined, reports that in
the past three months, the Company has engaged with a number of the largest
North American cryptocurrency miners in order to better understand their
commercial needs. This typically entails these parties providing QBT with a
number of the most commonly used mining rigs available in the market for the
Company to study and implement the porting of its Method A and Method B chip
enhancements.

 

The Company is targeting not only Intel’s Blockscale based miners, but also
the most popular mining rigs produced in China, which are used by more than
75% of the global Bitcoin market(1}. However, due to lack of publicly
available technical documents concerning the mining machines produced by
Asia-based manufacturers, the Company has been faced with a very challenging
software engineering project. Nonetheless, through the partial redesign of
Method B, the Company can start porting on the equipment made by the largest
mining rig manufacturer in that region. The Company’s R&D Machine Learning
team has been able to quickly modify Method B while retaining the entirety of
its performance enhancements, as confirmed through internal testing undertaken
by the R&D team. QBT expects that this encouraging result will (once the
porting of Method B on the mining rig firmware has been completed), allow the
Company to pursue commercial arrangements for the deployment of QBT’s
methods in the mining hardware market segment.

 

As a result, the Company is looking to engage with potential partners to
deploy Method B in Chinese produced mining rigs, which currently represent
over 75%{1} of all operational machines in the Bitcoin mining industry. In
monetary terms, at the current overall hashing power of the Bitcoin network,
this represents more than 2.5 million miners{2}, costing an estimated USD 5
billion at an average cost of USD 2,000 per mining rig.

 

Installing QBT’s Method B on Chinese manufactured rigs is anticipated to
increase the success rate of the mining probability of these machines by 2.6
times. Because of the intrinsic nature of Method B, in order to achieve the
same mining success rate a mining enterprise would have to increase its
hashing power by 50%. QBT believes, therefore, that employing Method B QBT
believes this could provide meaningful cost savings to the whole bitcoin
mining industry, in terms of reduced aggregate capital expenditure.
Furthermore, increasing the hashing power, via Method B’s software, without
adding new miners could represent a major energy saving.

 

Further announcements in relation to the porting of Method B on Asian
manufactured mining rigs will be made in due course.

 

Francesco Gardin, CEO and Chairman of QBT commented: “QBT has now entered
into the engineering phase of its first two products: Method A which our
laboratory tests show an increase in the mining performance by nearly 10% and
Method B, which increase the mining probability by 2.6 times. The overall
response from the North American miners has been encouraging ; by increasing
the hashing power, without increasing CAPEX could, in their view, be a
game-changer, especially in the current market, where the price of Bitcoin has
fallen below $30,000 and with the next ’halving’ expected in about nine
months.

 

“The Company, therefore, is focusing its main efforts on speeding up the
porting process of both Method A and B  in order to reach commerciality.”

 

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

For further information please contact:

 

Quantum Blockchain Technologies Plc
Francesco Gardin, CEO and Executive Chairman +39 335 296573

 

SP Angel Corporate Finance (Nominated Adviser & Broker)
Jeff Keating +44 (0)20 3470 0470
Kasia Brzozowska

 

Leander (Financial PR)
Christian Taylor-Wilkinson

 +44 (0) 7795 168 157

 

About Quantum Blockchain Technologies Plc

 

QBT (AIM: QBT) is an AIM listed investment company with a strategic focus on
Quantum Computing, Blockchain, Cryptocurrencies and Artificial Intelligence.
The Company has commenced an aggressive R&D and investment programme in the
dynamic world of Blockchain Technology, in order to disrupt the current method
of bitcoin mining, as well as discovering other advanced blockchain
applications.

 

Glossary of Terms:

 

Halving: Bitcoins have a finite supply, which makes them scarce. The total
amount that will ever be issued is 21 million. The number of bitcoins
generated per block is decreased 50% every four years. This is called
“halving.” The final halving will take place in the year 2140.  3 

 

Hashing power: Hash power or hashing power is the power that a computer or
hardware uses to run and solve different hashing algorithms, such as SHA-256
in the case of bitcoin.

 

Mining rig: A mining rig is a special hardware system, usually based on
graphic processing units (GPU), or dedicated ASIC chips, used for mining
cryptocurrency.

 

Porting: In computer science, it is a process of adapting, sometimes with
modifications, a software component to enable its use on a platform different
from the original one. Porting is done when the software is somehow adjusted,
not when the source code is completely rewritten in a different
programming language.

 

 1 https://www.coindesk.com/tech/2023/06/13/bitmains-s19-bitcoin-miners-account-for-bulk-of-network-hashrate-says-new-research/

 

 2 https://5264302.fs1.hubspotusercontent-na1.net/hubfs/5264302/special-insights/coinmetrics-research_the-signal-and-the-nonce.pdf

 3  https://quantumblockchaintechnologies.co.uk/investor-relations/glossary

 



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