Singapore Myanmar Investco pivots to cryptocurrency mining
03:33, 27 August 2021
Singapore Myanmar Investco (SMI) has made good on its June announcement that it was pivoting away from consumer services to crypto, by buying 800 bitcoin mining rigs.
The Singapore-listed asset manager expects delivery of the mining rigs within two to three months when it will start offering cryptocurrency mining service to institutional and retail clients.
“The move into cryptocurrency mining is in line with SMI’s previous announcement of its expansion into providing technology-based SaaS [software as a service] businesses and other high-tech platforms,” the firm said in a release announcing the move.
Order of 4,000 mining rigs
This deal is the first part of a plan to order up to 4,000 machines to be delivered to locations in South-East Asia over the next two to three months.
Clients will then be able to opt to either buy, lease or take out a fractional ownership of the mining machines.
"This is significant progress for SMI as we move towards technology-based SaaS businesses and help increase access to cryptocurrency mining for retail customers while generating substantial shareholder value,” said Mark Bedingham, chief executive of SMI.
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Myanmar coup hits business model
SMI was founded in 2005 and its previous business model focussed on high growth opportunities in the emerging market of Myanmar. The firm has interests across retail, transport and logistics, such as operating the US Coffee Bean and Leaf franchise in the Southeast Asian nation.
Myanmar was wracked by a military coup on 1 February which has cratered the country’s economic prospects. A number of international firms have subsequently either exited Myanmar or written down the value of their operations in the country.
On 30 June, SMI had announced its intention to pivot the company towards cryptocurrency, SaaS and other high technology platforms. It is also looking for partners to invest in gaming, digital entertainment and robotics.
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