Jasmine Telecom Systems Public Company Limited (JTS) would like to notify that JasTel Network Company Limited (JasTel), a subsidiary of the company, shall invest in the Bitcoin mining business which is its new business after prudently studying about it for a certain period of time and is convinced that this is a long-term investment that can generate new revenue to the company.
The Board of Directors of JasTel, at the meeting No.6/2021 convened on July 15, 2021 has resolved to approve the investment in the Bitcoin mining business of which the investment value is 156.7 million baht. The main equipment comprises 500 Bitcoin mining machines, which the company has gradually placed order, aiming to complete the installation within the third quarter of 2021. JTS stated that the company expects that it can continuously realize the revenue generated by this new business.
Based on the accounting policy, the company shall record Bitcoins as intangible assets and revenue (at fair value as at the date of acquisition) offset by impairment of assets. These Bitcoins will be partially sold. The revenue obtained from this business in 2021 will not have a significant impact on the total revenue.
Currently, to operate the Bitcoin mining business, an operator is not obliged to ask for permission from any agency. Moreover, it does not have to ask for permission from the Bank of Thailand either because Bitcoin has not yet been considered a currency in Thailand; thus, it is not under the regulations on currency exchange.
Nevertheless, Bitcoin mining is the process of adding the transaction records to the Blockchain network. The amount of Bitcoins received depends on the total Hash Rate at that particular period that is ever changing. The company’s major operating cost is electricity charge which is fixed and in line with the number of the Bitcoin mining machines. The company is well aware that this business has risks, pertaining to certification, both by law and future regulatory agencies, and the volatility of Bitcoin exchange rate; therefore, the company will do its best to cautiously manage such risks, preventing them from affecting its investments and the benefits of its own and the shareholders.
For the additional mining capacity of 5,000 Bitcoin mining machines in the future, the company will propose the issue for the Board of Directors’ consideration. In the event that the transaction falls into any significant criteria, stipulated by the Notifications on Acquisition of Assets, the company will proceed to comply with such criteria and accordingly inform the SET further.