Natural Resource in talks to buy digital coin mining co

Roei Sabag Photo: David Lee

The Israeli company is in advanced talks to acquire 75% of  Backbone Solutions Hosting, a private Canadian computer company.

Natural Resource Holdings Ltd. (TASE:NRH)reported to the Tel Aviv Stock Exchange (TASE) that it was in advanced negotiations to acquire 75% of the shares in Backbone Solutions Hosting, a private Canadian computer company, through an allocation of shares that will constitute 75% of the Canadian company's issued share capital after the allocation.

Natural Resource reported, "The acquisition of Backbone Solutions Hosting, if completed, is consistent with the change in the company's business strategy and its entry into blockchain and encrypted and decentralized currencies." Natural Resource's share price zoomed an additional 24% yesterday following the announcement.

Natural Resource's share price has skyrocketed by 1,000% within six weeks, after the company board of directors, headed by controlling shareholder and CEO Roy Sebag, announced on October 17 that it was considering a switch in strategy to working with blockchain technology, including mining digital currencies, instead of investing in gold and iron mines in North America. In the same report, Natural Resources also stated, "The new sphere of activity under consideration is an innovative one, and is being developed in Israel and worldwide. Regulation for this sector is not yet complete and thorough." 10 days ago, Natural Resource announced that its board of directors had decided to change the company's name to Blockchain Holdings.

Blockchain technology creates decentralized databases on which bitcoin, ether, and others of the over 1,300 types of digital currency in the world are based. The aggregate market value of bitcoin is currently $187 billion, following a 53% increase in its price in the past month and a 1,400% rise since the beginning of the year.

Published by Globes [online], Israel Business News - www.globes-online.com - on December 4, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Roei Sabag Photo: David Lee
Roei Sabag Photo: David Lee
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