Genesis Mining Technologies (currently Butte Energy) Announces Go-Public Transaction for Entire Cryptocurrency Mining IP Asset Portfolio and Growth Pipeline of Global Leader, Genesis Mining Group
Not for distribution to U.S. news wire services or dissemination in the United States
Butte Energy Inc.
to be renamed
GENESIS MINING TECHNOLOGIES CORP.
Suite 3123 – 595 Burrard Street
Vancouver, BC V7X 1J1
TEL: (604) 609-6110
February 12, 2021
Genesis Mining Technologies (currently Butte Energy) Announces Go-Public
Transaction for Entire Cryptocurrency Mining IP Asset Portfolio and Growth
Pipeline of Global Leader, Genesis Mining Group
Highlights:
● Entire portfolio of Genesis Mining Group’s cryptocurrency-related intellectual property to
be taken public, together with more than 200MW pipeline of contracted, green-powered
cryptocurrency data centre construction and expansion projects in Europe and North
America
● Resulting issuer will bring to market turnkey financing and technology solutions for
cryptocurrency data centre operators around the world, leveraging Genesis Mining
Group’s pioneering proprietary software platforms Hexa, Janus, and Block Explorer, and
supply-chain relationships built over nearly a decade in the industry
● Genesis Mining Group Founder and CEO, Marco Streng, to be appointed as Chairman
● C$20 million private placement financing
Vancouver, Canada, and Birkirkara, Malta – Butte Energy Inc. (TSXV: BEN.H) (the “Company”
or “Genesis Mining Technologies”) (being renamed Genesis Mining Technologies Corp.) has
entered into an arms-length, legally binding letter of intent dated February 12, 2021 with Genesis
Group Limited (“Genesis Mining Group”) to acquire (the “Transaction”):
(a) all of Genesis Mining Group’s intellectual property relating to cryptocurrency mining
operations, including its proprietary (i) datacentre construction, layout, and cooling system
known as “AC/DC”; (ii) datacentre monitoring and optimization software platform known
as “Hexa”; (iii) blockchain data analysis tool known as "Block Explorer"; and
(iv) cryptocurrency market forecasting software platform known as “Janus”; and
- 2 -
(b) all rights to Genesis Mining Group’s more than 200MW pipeline of contracted
cryptocurrency mining data centre construction and expansion projects in Europe and
North America.
The Company
Leveraging its pioneering, proprietary software platforms and supply-chain relationships built over
nearly a decade in the industry, Genesis Mining Technologies intends to bring flexible, turnkey
financing and technology solutions to cryptocurrency data centre operators around the world.
Genesis Mining has serviced over 2,000,000 customers since its founding in 2013 and has
established a broad network of partner data centre operators globally.
“This go-public transaction marks a pivotal next step in Genesis Mining Group’s history and will
be a gamechanger for the cryptocurrency mining industry,” commented Marco Streng, Founder
and CEO of Genesis Mining Group and incoming Chairman of the Company . “We believe that
cryptocurrencies will be at the centre of the future of global commerce. However, the integrity of
this system requires computing infrastructure that is decentral ized, optimally architected, and
powered sustainably with green energy. With Genesis Mining Technologies ’ turnkey solutions,
existing operators and new entrants with access to cheap, green power can obtain the financing,
procurement, and operational ingredients to compete with the world’s leading miners, in one stop.”
The Company will constitute Genesis Mining Group’s core business going forward, with all future
mining operations and financing transactions to be structured such that economics will accrue to
the Company solely, with Genesis Mining Group’s exposure being through its shareholdings in
the Company. Concurrent with closing of the Transaction (“Closing”), Genesis Mining Group (or
its affiliates and principals) will be issued such number of shares of the Company as will constitute
approximately 80% of the issued and outstanding common shares following completion of the
equity financing and consolidation (described below) . Closing is subject to receipt of TSXV
approval, completion of definitive documentation, any requisite shareholder approvals , and
completion of the consolidation and equity financing.
The Business Model and Pipeline
With the global market capitalization of cryptocurrencies recently topping US$1 trillion,1 and
Bitcoin (BTC) and Ethereum (ETH) hitting all-time-highs, Genesis Mining Technologies intends to
provide investors with de-risked exposure to a diversified portfolio of cryptocurrency mining assets
and financing and technology licensing structures with third party partners. The Company will
provide investors with direct exposure to cryptocurrency price performance, focusing its business
model on driving free cashflow.
The Company’s current pipeline consists of five anticipated deals in Europe and North America,
with a more than 200MW supply of cheap, green power already under contract . The Company
will use these internally generated opportunities to develop and pilot its financing and technology
solutions. These initial projects may take a variety of ownership and financing forms , but the
Company intends to focus its efforts on rolling out its solutions at scale by partnering with other
established miners and new entrants to the market.
The Company’s solutions will be focused on operators of green powered cryptocurrency
infrastructure projects around the world to provide (i) flexible financing solutions for new buildouts
and expansions, (ii) procurement of the right mining hardware for the project , benefitting from
1 Source: https://coinmarketcap.com/
- 3 -
Genesis Mining Group’s know-how and supply chain relationships built over years of being one
of the top miners globally, and (iii) optimization of operations through access to the Company’s
technologies, including its AC/DC, Hexa, Block Explorer, and cryptocurrency market forecasting
platforms.
Management and Board
The Company will appoint an experienced management team and board of directors on Closing
consisting of principals from the Company and Genesis Mining Group , including incoming
Chairman Marco Streng.
Marco Streng is a crypto mining industry pioneer and Founder and CEO of Genesis Mining Group.
In 2013, he co -founded and launched Genesis Mining, bootstrapping the organization into
becoming one of the largest crypto mining companies in the world serving over 2,000,000
customers.
Tillmann Korb will be appointed as the Company’s Chief Executive Officer. Mr . Korb holds a
Master’s degree in mechanical engineering. He studied at the Technical University of Munich and
École Central Paris. His professional career started in strategy and management consulting, with
a focus on the German automotive industry. He has been a cryptocurrency and blockchain
enthusiast since the early days. Motivated by the urge to turn his private enthusiasm into a
professional career, he started his engagement for Genesis Mining Group as Regional Manager
for North America, developing cryptocurrency data centers and business relations. He was key in
pivoting Genesis Mining Group’s business model to providing mining technologies and financial
resources to its established partner network.
Consolidation and Financing
On or before Closing, a consolidation of the Company’s issued and outstanding share capital on
the basis of one new common share for every four outstanding common shares will be completed.
No fractional shares will be issued under the consolidation and any fraction will be rounded to the
nearest whole number.
In connection with the Transaction, the Company will complete a private placement financing of
subscription receipts (“Subscription Receipts”) at a price of C$1.00 per Subscription Receipt for
aggregate proceeds of C $20,000,000, subject to the approval of the TSX Venture Exchange
(the “Exchange”). Each Subscription Receipt will convert into one post -consolidation common
share of the Company immediately prior to the completion of the Transaction. Proceeds from the
financing will be used to commence initial deployments of capital into Genesis Mining
Technologies’ existing pipeline and for general working capital.
Trading in the common shares of the Company has been halted in accordance with the pol icies
of the Exchange and will remain halted until such time as all required documentation has been
filed with and accepted by the Exchange and permission to resume trading has been obtained
from the Exchange. Since the common shares of the Company are listed on the NEX market of
the Exchange, and the Transaction does not constitute a Related Party Transaction under the
policies of the Exchange, the Company is not required to seek shareholder approval for the
Transaction.
For corporate updates, please register for our mailing list at genesis.tech.
- 4 -
Completion of the transaction is subject to a number of conditions, including but not limited to,
Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable,
the transaction cannot close until the required shareholder approval is obtained. There can be no
assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing
statement to be prepared in connection with the Transaction, any information released or received
with respect to the Transaction may not be accurate or complete and should not be relied upon.
Trading in the securities of the Company should be considered highly speculative.
The Exchange has in no way passed upon the merits of the Transaction and has neither approved
nor disapproved the contents of this news release. Neither the Exchange nor its Regulation
Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
ON BEHALF OF Butte Energy Inc.
(to be renamed GENESIS MINING TECHNOLOGIES CORP.)
“Geir Liland”
CEO and Director
For further information please contact:
Geir Liland
Tel: (604) 609-6110
Forward-Looking Information
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning
of the applicable securities legislation that is based on expectations, estimates and projections as at the date of this
news release. “Forward- looking information” in this news release includes statements about completion of the
Transaction, Consolidation, Financing and Name Change; the business model, goals and objectives of the Company,
and other forward-looking information includes but is not limited to inform ation concerning the intentions, plans and
future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information
include, but are not limited to, risks related to the Company’s ability complete the Transaction, Consolidation, Financing
and Name Change, including obtaining approval from the Exchange and the Company’s shareholders, if required; the
cryptocurrency market generally; and the ongoing effects of the COVID-19 pandemic.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of
the Company based on information currently available to the Company. In connection with the forward-looking
information contained in this news release, the Company has made assumptions about the Company’s ability to
complete the Transaction, Consolidation, Financing and Name Change; historical prices of cryptocurrencies and the
ability of the Company to mine cryptocurrencies and there will be no regulation or law that will prevent the Company
from operating its business. The Company has also assumed that no significant events occur outside of the Company's
normal course of business . Although the Company believes that the assumptions inherent in the forward-looking
information are reasonable, forward-looking information is not a guarantee of future performance and accordingly
undue reliance should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking i nformation,
whether as a result of new information, future events or results or otherwise.