Valereum to end bitcoin mining to focus on Gibraltar exchange

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Blockchain company Valereum said on Thursday it was selling its bitcoin mining assets to Vinanz Ltd for a 24% stake in the company as part of plans to acquire and expand the Gibraltar Stock Exchange.

Valereum, which gave no value for the deal, said the sale of its bitcoin assets was conditional on Vinanz being listed on a stock exchange.

Valereum shares were down 13% at 1030 GMT.

The price of bitcoin, the biggest cryptoasset token, has crashed in recent months by some 70% since its November record of $69,000. It currently trades at $23,509.

"This is a strategic reorganisation to focus Valereum on the acquisition and expansion of the Gibraltar Stock Exchange and the imminent launch of our NFT (non-fungible token) program," Valereum said in a statement.

"However this also provides Valereum with a significant exposure to crypto markets through a substantial holding in a company focused solely on crypto mining and distribution."

Valereum said in January it would buy 90% of the Gibraltar Stock Exchange to create what it called the world's first bourse to "bridge" stocks and cryptoassets.

Valereum would have no representatives on the Vinanz board.

"The acquisition of Valereum's BTC miners means that Vinanz will start life as an operating company with miners and BTC in its wallet," Vinanz Chairman David Lenigas said.

"The volatile Bitcoin price has taken a bit of a price hit in recent times, but the board of Vinanz sees this as a great time to grow a substantial BTC business," Lenigas said.