FORT LEE, NJ, Oct. 29, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- GD Entertainment and Technology (OTC: GDET) (“GDET” or the “Company”), an emerging leader in the CBD, Blockchain, and Luxury Retail markets, is pleased to announce the completion of a material Asset Purchase Agreement (the “Agreement”) for the acquisition of significant new and used Bitcoin mining assets to be immediately integrated into the Company’s active cryptocurrency mining operations.
“We are expanding and optimizing production from our mining operation at a rapid pace,” commented Anil Idnani, CEO of GDET. “This planned expansion follows a series of steps in Q2 and Q3 to dramatically lower our all-in costs through improved negotiated rates with utility providers and significant firmware upgrades. Any notable increase in the price of Bitcoin following this expansion in production at our mining facility should translate into substantial top and bottom-line growth for our shareholders.”
The Company is currently operating 72 ASIC Bitcoin Miners at its primary New Jersey mining facility, with plans in place to move toward full fleet operation over the near term. In addition, the Company has begun the process of a major planned expansion of this fleet. This Agreement will add 17 state-of-the-art miners to the Company’s fleet, immediately increasing yield by 24%. The move is part of a larger expansion strategy geared toward augmenting shareholder value as the Company prepares for higher cryptocurrency exchange rates and wider mainstream adoption.
According to research by the Company, Bitcoin pricing in 2020 may be significantly impacted by growing concerns over the sustainability of what is already the longest-lasting global economic expansion cycle in modern history. This growing cyclical vulnerability is further amplified by the fact that major central banks in the developed world have already driven interest rates so low that over $14 trillion in sovereign debt is now trading at negative interest rates, suggesting that traditional monetary policy tools may present a lack of significant potency in a more aggressive contractionary environment, driving substantial new demand for alternative non-fiat stores of value like precious metals and Bitcoin as a hedge against experimental new stimulus strategies such as Modern Monetary Theory.
In addition, the Company’s expansion in mining capacity follows significant optimization steps taken earlier this year, including a sharp reduction in all-in utility costs (annual energy savings of as much as 41%) and an upgrade in unit-level system performance leading to a powerful increase in hashrate-per-unit-power consumption and sharply augmented system-wide security.
“Individuals and firms that made substantial hardware and technology investments in order to mine cryptocurrencies when Bitcoin was trading well above its present levels are now providing an advantageous secondary market for state-of-the-art hardware,” continued Mr. Idnani. “We have predicated our Mining Segment strategy on the assumption that we would have an opportunity to dramatically expand mining capacity at reduced costs. That opportunity is now in play, and we have negotiated equipment acquisitions accordingly. This step should put the Company in an extremely advantageous position to capitalize on subsequent improvements in BTC exchange rates.”
GD Entertainment & Technology, also known as GDET, focuses on high growth industries to fulfill a diverse selection of premium products nationwide. The company currently manufactures, wholesales, and markets a portfolio of blockchain/financial service-based products. GDET strives to become one of the premier Cryptocurrency mining facilities that is client-focused and dedicated to creating a new standard in the Blockchain space based on security and transparency. GDET has also developed a strong relationship with suppliers worldwide to ensure future purchasing. The company currently has two subsidiaries, DreamCard and HyperDigital Technologies, which both offer a selection of transactional-based products and services. DreamCard allows users to create a customizable debit or credit card using its state of the art online platform. HyperDigital Technologies is the Cryptocurrency ATM sector of GDET and aims to secure multiple MSB, money services business, licenses in order to host ATM units throughout the country.
Safe Harbor Provision Cautionary statement for purposes of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Information in this news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of the Company and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the execution and performance of contracts by the Company and its customers, suppliers and partners. Please also review GD Entertainment and Technology annual and quarterly financials for a more complete discussion of risk factors. The Company disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities nor shall there be any sale of these securities in any state in which such solicitation or sale would be unlawful prior to registration or qualification of these securities under the laws of any such state.
GD Entertainment and Technology
1 Bridge Plaza
Fort Lee, NJ 07024