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Home » Popular Markets » Equities » Aquarius AI: Bitcoin mining theme captures Canadian investors as micro cap spikes

Aquarius AI (CSE:AQUA) is a small, very small Canadian-listed micro cap that is no stranger to sudden fluctuations in its stock price at the moment.

It comes as no surprise to us to see the share price moving again this week as investors in North America and Europe are gripped by Bitcoin mining.

Shares in Aquarius AI are moving this week on yesterday’s news that the company is entering into a managed services agreement with Luxor Technology Corp. This is a US-based Bitcoin mining and tech services firm that is responsible for one of the biggest Bitcoin and proof of work software packages, and which also runs the Luxor mining pool.

Under the terms of the deal, Luxor will be managing Aquarius AI’s application specific integrated circuit – aka ASIC – mining hardware procurement, carbon neutral power procurement and data centre support services. Luxor will also interestingly be providing “financing advisory services.”

Institutional grade crypto mining pool service

Aquarius AI will be getting an institutional grade mining pool service for mainstream cryptocurrencies like BTC and ETH as well as other proof of work assets. Luxor will also provide ASIC brokerage and delivery services and manage all of Aquarius AI’s Bitcoin mining operations, which are in an advanced stage of development.

The agreement is for 36 months and will involve an exchange of both money and securities. There is also going to be a revenue sharing component to this deal.

“Luxor gives the company the ability to procure tens of Megawatts of carbon neutral power in short order, with the backup to support the ASIC mining hardware and pool management at our anticipated scale,” said Owen Sagness, Director of Operations at Aquarius AI.

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The Luxor team have built a range of solutions for scaling blockchain infrastructure, including a globally distributed mining pool, a hashrate network-switching engine, and a wide variety of blockchain software ranging from blockchain explorers to an ASIC management platform.

Timing for the deal does look good

Timing for the deal looks good for Aqua as the rising Bitcoin price has many minds focused on Bitcoin-related plays in the mining space. Companies which are getting into this area look like good exposure plays for many investors, hence the sudden spike in the Aqua stock price yesterday during Canadian trading hours.

Aquarius AI stock had been slipping after it hit a short term peak of 0.175 in late June. Despite the rise in Bitcoin it was starting to look like an uncorrelated bust, but the deal with Luxor has seen a considerable boost to the stock price with massive buying volume in Canada yesterday. This IS still a tiny company though; the market cap is less than CAD 10m and it is still off by 17% on the year, despite recent gains.

We are reassured however by Luxor’s offer to hold Aquarius AI’s hand on future financing and broking going forward. This could help the company steer in a new direction. Much will depend on the course of the current crypto bull market, and the degree to which Luxor influences things at Aquarius AI over the next three years. One to watch closely.


This article is not investment advice. Investors should do their own research or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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