Hello Pal Continues Run, Introduces Bitcoin and Ethereum Mining Program for Users
Not many financial assets quadrupled in 2020 and gained another 60%+ already in 2021. That’s been the story of Bitcoin, which crossed $50,000 for the first time ever Tuesday morning with no signs of slowing down as more companies pour into the cryptocurrency and everyday people understand what it is and how to build value through investment.
Unlike the so-called “crypto bubble” in 2017 that was primarily retail buyers, the rise over the last year is largely attributed to the likes of PayPal (NASDAQ: PYPL), Square (NYSE: SQ), Mastercard (NYSE: MA), Microstrategy (NASDAQ: MSTR) and other corporations making big investments in Bitcoin. The latest signal that the digital currency is here to stay was Tesla (NASDAQ: TSLA) buying $1.5 billion in Bitcoin, adding that it intends to give customers the option to buy an electric vehicle with Bitcoin.
Expanding upon a project begun in 2018, Vancouver-based tech company Hello Pal International Inc. (CSE: HP)(OTC: HLLPF) is giving its users an easy way to participate in the digital currency evolution. The company, which provides international live-streaming, social messaging and language learning mobile apps for iOS and Android, is launching a “Crypto-Mining Initiative” in partnership with Shanghai Yitang Data Technology Co. Ltd.
Yitang currently manages 35,000 mining machines spread across the North, North West and South East parts of China and has pre-existing contractual arrangements with mining machine vendors to acquire many more in the future.
The unique platform will allow Hello Pal users to become active in mining Bitcoin and Ethereum, something that is too expensive and complex for most everyday people. Cryptocurrency miners earn tokens for being the first to solve complex solutions to hashing puzzles, effectively building “blocks” for the blockchain in which data is securely stored. Unlike the early days of crypto, it is impossible nowadays to profitably mine Bitcoin with a regular home computer. Specialized hardware called a Graphics Processing Unit (GPU) or an Application-Specific Integrated Circuit (ASIC) is necessary. A single ASIC can cost into the thousands of dollars.
Today, almost all serious crypto mining is conducted in purpose-built data centers with banks of ASICs located in regions with inexpensive electricity, as power consumption is the number one cost in crypto mining. No surprisingly, many of these data centers are in China, where inexpensive electricity abounds.
Apropos, China is the primary revenue driver for Hello Pal, although its reach is constantly broadening. In January, revenue hit a record CDN$2.8 million, up 32% from December. 10% of revenue was generated outside China in January, up 6.5% month-over-month. The company now has over 5.4 million users spanning more than 200 countries.
With the surge in appetite for Bitcoin, excitement towards mining is also moving skyward. To that point, mining companies MicroBT, Bitmain Technologies and Bitfury are all looking at joining the public domain, according to Renaissance Capital.
Per the agreement, Hello Pal users, either individually or as a group, will be able to leverage Yitang’s contractual arrangements with mining machine vendors to purchase Bitcoin and Ethereum mining machines. Users will have the option to either make the purchase alone or create a group and/or to buy machines in full or take fractional ownership. Yitang will host and operate the miners, which will be personally identifiable to each purchaser or group.
Mined BTC (Bitcoin) and ETH (Ethereum), the world’s two most popular cryptos, will be credited to user’s digital wallets each day. Yitang, a leading provider of digital wallet services with over USD$70 million in crypto-assets under management, is currently working with Hello Pal to reconfigure the HP digital wallet, as well as re-introduce Hello Pal’s digital utility token branded “Palto”. The Palto token, first introduced in 2018 as part of the plan to make crypto a seamless financial component of HP’s global domain, is being enhanced and fully backed by blockchain technology where it can be used across the HP app ecosystem as a borderless transfer of value, including rewarding livestream hosts for their efforts.
Hello Pal Founder and Chairman KL Wong commented in today’s press release, “The recent activity and interest in cryptocurrency presents us with a unique opportunity to introduce cryptocurrency to our users, as well as to bring cryptocurrency users to our platform.”
To provide a sample of what’s in store, Hello Pal has purchased several BTC and ETH mining rigs that will demonstrate to users what is can be accomplished with a purchase and how to build value in their digital wallet through the novel platform. The Bitcoin mining machines (Whatsminer M31S) each have a hash rate of 74T hash/s operating at an efficiency of 44w/T, while the Ethereum machines have MSI 5700 graphics cards at their core with an estimated hash rate of 400M. Going forward, Hello Pal intends to add more computers to its portfolio.
Management says more details are forthcoming that will differentiate Hello Pal’s Crypto-Mining Initiative from (often complicated) cloud mining services available today.
Shares of HP have been gaining steam in 2021, rising from 21 cents last month to 72 cents currently, as the crypto frenzy rages on and Hello Pal initiates a user-friendly way to get people in the mix at the exciting mining level.
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