The merger agreement between BTCS Inc, formerly Bitcoin Shop (OTCMKTS:BTCS), and Spondoolies-Tech has been finalized.
BTCS is primarily focused on the mining of bitcoins, sourcing its equipment from Israel-based Spondoolies. The companies signed a letter of intent for their merger in April and BTCS invested $1.5 million in the startup a few weeks later.
The arrangement would effectively make Spondoolies the first publicly traded manufacturer of bitcoin mining equipment. BTCS shareholders will own a 54.4% to 55.4% stake in the new combined entity, while Spondoolies shareholders would own 44.6% to 45.6%, subject to the number of securities outstanding after the deal closes.
Spondoolies generated $28 million in revenue in 2014.
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The companies also announced the launch of Spondoolies’ latest miner, the SP50. It is capable of producing 110 TH/s (1 TH = 1012 hashes, or encryption calculations). Its advertised energy efficiency is 0.15 J/GH (1 J = 2.78×10-7 kwh, 1 GH = 109 hashes).
The product is only available for customers ordering in bulk.
The latest advances in hardware efficiency have helped the total network hash rate reach new highs. Greater efficiency has allowed more hardware to come online, despite the resulting increases in difficulty. A few weeks ago, BitFury, another heavyweight in ASIC (application specific integrated circuit) manufacturing, announced its launch of a chip with an advertised efficiency as low as 0.06 J/GH.
The BitFury chip is of the 16 nm variety. Spondoolies SP50 uses a 28 nm chip, which it says is more “reliable and cost effective”. It also notes that the design is compatible with 16 nm chips for future integration.