Bitcoin SV (BSV) Leaders in Trouble as Square Mining and CoinGeek Deal is Going Sour
Recent plans to create the largest publicly traded Bitcoin Miner has hit a hurdle after an announcement from Square Mining stated that negotiations between itself and Bigfoot Holdings (operating as Coin Geek Mining and Hardware) have been postponed till March 19, 2019.
Square Mining’s Future Plans Remain Uncertain
Square Mining announced its plan to acquire CoinGeek’s mining assets last year amidst prospects of future growth during the launch of Bitcoin SV. After acquisition talks were underway, Square mining decided to work on its prototype. The FPGA (field programmable gate array) is an ASIC chip that was intended to mine Bitcoin SV, Bitcoin, and more SHA-256 linked cryptocurrencies.
Unfortunately, the company’s initial simulation testing produced an unsatisfactory result. The failed test for the ASIC (Application-Specific Integrated Circuit) which was intended to be used for mining Bitcoin SV was followed by the prompt resignation of Taras Kulyk from the position of Chief Executive Officer and Director. He was the brains behind the development of the ASIC chip and the acquisition of CoinGeek.
The market was quick to respond to the news. Squire Mining and its meltdown led to a drop in crypto prices. The Squire Mining SQR took a hit and closed at 0.018 CAD. Crypto had previously enjoyed an unparalleled high of 0.815 CAD in September 2018 and is now dealing with a 79.1% fall since September.
With several questions left unanswered about Squire Mining’s future and the exit of a CEO, the postponement of their acquisition plans was inevitable. Squire Mining intends to acquire CoinGeek’s mining assets, including those owned by the affiliates, and several more blockchain-linked assets.
Even with this news, the Squire team remains unshaken and exudes confidence in their ability to conduct the transition successfully and acquire the necessary assets from CoinGeek. However, the task is proving to be a challenge with the plummeting Bitcoin SV. For the miners to remain profitable, Bitcoin SV requires a miracle to get it moving and provide miners with a greater volume of fees.
At the end of the announcement, Squire Mining stated that the company is still waiting for a final report on their ASIC chip. The announcement further promised a revised product development program, despite recent hurdles. Squire Mining is still working to deliver the next-generation ASIC mining hardware.
Bitcoin SV Suffers A Major Blow.
The success of the ASIC chip from Squire Mining was linked to a major boost for Bitcoin SV prices. The coin was meant to improve BSV’s network with greater hash power and the subsequent acquisition of CoinGeek’s assets would have provided the requisite mining tool essential for Bitcoin SV to succeed. The failed launch led to a slump in Bitcoin SV prices. The prices moved from USD 75 to USD 61 shortly after the announcement.
Squire Mining is a Canadian based company whose subsidiaries link it to data mining technology hardware and global blockchain support. CoinGeek Mining and Hardware operates a fleet of ASIC miners.