Alset to enter cryptocurrency mining business

Cryptocurrency coins. Photo by Kanchanara on UnsplashCryptocurrency coins. Photo by Kanchanara on Unsplash

Alset International plans to enter the cryptocurrency mining business via newly formed subsidiary Alset Mining, the Singapore-listed developer of U.S. properties said in a filing to SGX Monday. 

That follows moves by several other Singapore listed companies into cryptocurrency mining, including Hatten Land and Singapore Myanmar Investco (SMI), which changed its name to SMI Vantage. Intraco also recently entered the digital-asset industry, with an agreement to acquire 51 percent of MHC SG.

Alset Mining will mainly be involved in cryptocurrency mining, or the process of solving mathematical equations which is rewarded with a cryptocurrency, the filing said. 

The new entity will acquire mining rigs to create a consistent stream of revenue, and will also search for low-cost sustainable sources of energy, such as wind, solar or hydroelectricity to align with sustainability efforts, Alset said. 

Alset, citing data from Brand Essence Research, said the cryptocurrency mining market is expected to reach US$5.29 billion by 2028, with a compound annual growth rate of 28.5 percent. 

“This represents a huge upside within this emerging technology space that is rapidly changing every day,” Chan Tung Moe, executive director and co-CEO of Alset International, said in the statement.

“We believe that the cryptocurrency mining opportunities in the market remains profitable. We will take prudent and measured steps as the industry evolves,” Chan said. 

Alset International’s current business includes property development and investment in the U.S., asset management of mainly U.S. medical and housing REITs, a food and beverage business under its hospitality segment, development and manufacturing of biomedical products, direct sales of health and wellness products, and information technology-related businesses, including blockchain technology.