Vertically integrated blockchain and data center technology company DMG Blockchain Solutions Inc. has announced that it has acquired Reactor.xyz from Navier, Inc., a well-known supplier of custom data center deployments with a focus on artificial intelligence (AI) and digital asset mining.
The deal comes at a time when global crypto miners have been seeing a tough time, with Hasrates going down as compared to previous years. The deal also comes at a time when the global world is seeing a push towards AI.
What Will The Acquisition Include?
The new partnership will see to DMG offer Hashrate contracts to other companies. Reactor’s beneficial feature includes a highly optimized method for managing and automating hashrate contracts.
The software’s balancing algorithm, which ensures hashrate delivery, is very distinctive and has multiple patent applications.
With the deal, Bitcoin miners, who normally sell their hashrate directly to a pool, can now sell their hashrate to customers who are prepared to pay up front for a predetermined period of time by using a hashrate contract.
A reduction above the sellers’ usual Bitcoin payouts over the term of the contract is frequently used to entice these purchasers. Similar to factoring receivables, this agreement gives sellers quicker access to payment and functions as a useful treasury management tool.
DMG’s CEO, Sheldon Bennett commented, “DMG has made tremendous progress towards creating a holistic, carbon neutral Bitcoin ecosystem. This month alone, we’ve increased our own hashrate to 1.6 EH/s—up about 50% from the prior month, significantly upgraded the software behind Terra Pool and are on track for Systemic Trust to become a fully qualified custodian by the end of the calendar year or early in the new year. Now with the purchase of Reactor, we’ve added yet another important component to our ecosystem with the unique capability provided by Reactor.”
Global Bitcoin Miners See Difficulty In Sustenance
Globally, bitcoin miners have been seeing a decline in earnings. Profiting from the mining industry has become challenging as a result of the halving that was meant to stimulate the market. Bitcoin mining has become more difficult than ever before.
As UnoCrypto reported earlier, back in September, mining difficulty reached an all-time high after rising by 3.5%. The measure, which has a steady increasing trend over time, frequently indicates forecasts for directional price changes.
In April, a software code update known as the “halving” cut the potential revenue available to miners in half, placing pressure on the margins of many of the enterprises.