IOT Group scores first clients for Blockchain Applications Complex

Written by Zoe Gross, edited and authorised by Jonathan Jackson. Published at Apr 27, 2018, in Technology

ASX tech small cap, IOT Group (ASX:IOT) has today revealed that its subsidiary, IOT Blockchain, has inked binding term sheets with two initial blockchain clients to operate within the proposed IOT Blockchain Applications Complex (BAC) behind the grid at the Hunter Energy Power Station in NSW.

These newly signed clients are Abacus Mercantile and Crypto Mining Australia. IOT has signed terms sheets with each for an initial three years with an option for a further 3 + 3 years, offering them long-term security for their investment. The agreements are for supply of approximately 2.5 megawatt load for more than 1000 machines.

IOT will locate its blockchain clients at the proposed BAC, which will be established behind the grid at the Redbank Power Station in NSW’s Hunter Valley for a monthly fee per machine and under a long-term Power Purchase Agreement (PPA).

Both clients want to grow their operations further with this opportunity, benefiting from low-cost power, reliable power supply and scalability.

IOT noted that demand to secure space and contract power within the BAC has been very high.

Subject to satisfaction of all conditions, the terms sheets will secure long-term revenue and profit streams for IOT Group.

IOT Group executive director and founder, Sean Neylon, said: “The interest in our Blockchain Applications Complex has been extremely high. We welcome both companies and look forward to working with them.”

“These Terms Sheets are intended to generate a long-term revenue and profit for IOT from the supply of power and the rental space within the BAC. It is expected that IOT will secure agreements for at least 10 megawatts of power in Q2 of this year with further expansion on this during Q3 and Q4 2018.”

“10 mw of power with contracts for up to 9 years generates revenue and profit for IOT and builds long term shareholder value in the company,” continued Neylon.

This piece of news comes only a matter of a days since IOT’s last encouraging update on its underlying blockchain strategy. Earlier in the week, IOT announced it has clinched a partnership global blockchain specialist, Lakeba, to create, develop, structure and build IOT Blockchain projects.

Overall, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.

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