BTCS and Spondoolies Finalize Merger, Launch SP50

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 for their merger in April and BTCS $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.

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 . Greater efficiency has 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, 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.

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