Atlas Cloud Enterprises Inc (OTCMKTS:ATLEF) is a new player in the cryptocurrency mining space. Colocation of mining resources is starting to boom as a new growth space. Recent research by Coherent Market Insights suggests that the cryptocurrency mining space has the potential to become a $38B industry by 2025. Hence, Atlas may pick up some buzz as the company starts to make expansionary moves in the space.
As a case in point, the company recently announced the closing of the previously disclosed acquisition of MKH Electric City Holdings LLC, a Washington State company. Management noted in that communication, the transaction includes a 6,600-sq. ft. facility, which is currently being upgraded to industrial-scale cryptocurrency mining standards.
According to the release, “The facility, located in Electric City Washington, is less than five kilometers from the Grand Coulee Dam which impounds a sizable portion of the Columbia River. Due to its location, the facility significantly benefits from electrical provisioning at approximately $0.03/kWh, one of the least expensive commercial rates in the world. Atlas Cloud’s energy consumption dedicated to digital currency mining for this individual location is 3.0 megawatts (“MW”), supplied by the Grant County Public Utility Department with the ability to upgrade to 5.0 MW.”
Atlas Cloud Enterprises Inc (OTCMKTS:ATLEF) offers tailored Colocation and flexible Cloud Computing options for small and medium businesses in Western Canada.
Basically, the company provides co-location, back-up/redundancy IT, telecom equipment, and cloud computing services to small and medium size businesses in Western Canada. The company offers committed space to startup technology companies, such as providing desks, chairs, high-speed Internet, meeting rooms, relevant workshops, and other office infrastructure required by such companies to grow and compete in the technology sector.
Atlas Cloud Enterprises Inc. is headquartered in Vancouver, Canada.
According to company materials, Atlas Cloud Enterprises Inc. is a growth oriented, CSE-listed company focusing on the business of providing co-location and backup/redundancy IT, telecom equipment and cloud computing. Atlas Cloud will provide customers with secure power access, cooling and bandwidth to ensure co-located, back-up or Cloud systems offer minimum risk of failure. Furthermore, Atlas is focused on the blockchain sector and digital currency mining. Atlas Cloud aims to become the lowest-cost producer of digital currency mining and blockchain infrastructure.
Atlas Cloud owns a facility currently undergoing preparations for use as a digital currency mining operation located in Electric City, WA. This location currently benefits from a dedicated low-cost energy source of 3.0 MW and the Company is seeking to significantly expand its operations with the development of additional facilities offering economical, high-yield energy infrastructure opportunities.
ATLEF has about $1.9M in cash on the books, which stands against about $124K in total current liabilities. The company has pulled in about $365k in trailing twelve month revenues, with growth on the top-line on a quarterly year/year basis running along at a healthy 35% clip. The market now values the stock at a market cap of $12.1M.
With this financial standing, investors will be interested in understanding more about the potential efficiency of its new data center. As noted in the company’s mid-March press release, “The Grant County Data Centre, utilizing 80% of the current 3.0 MW of dedicated power, can host up to 1,700 Application Specific Integrated Circuit (ASIC) mining servers. A second phase (an additional 2.0 MW) is expected to be completed in 2019, increasing total energy dedicated to digital currency mining to 5.0 MW. Atlas Cloud is fully funded to complete Phase 1 and 2 of the Grant County Data Centre.”
