Quantum Blockchain Technologies plc has now completed a key testing phase of its proprietary bitcoin mining search algorithm and announced satisfactory results. The test results show that QBT's algorithm, known as Method B, has theoretically increased the rate of successful bitcoin mining by 2.6 times compared to standard bitcoin mining industry practices widely used over the same time period. The research results and the statistical methodology used to validate them give the Company confidence that the research approach being used has uniquely identified some properties of the SHA-256 space that other research teams have not detected.

The Company's algorithm also theoretically reduced electricity consumption by 4.3%. To illustrate this, a mining farm - with 100,000 miners - would save up to $4.5 million per year when applying Method B and only considering the impact of the reduced energy consumption. Given the expense and accessibility of current bitcoin mining equipment, ASIC chipsets and mining strategies, these results are based on a bitcoin mining difficulty lower than the difficulty currently in the market.

However, the research results and the statistical methodology use to obtain them give the Company confidence that its algorithms should be scalable for commercial use. This would enable a step-change improvement in theability of successfully mining bitcoin using the current bitcoin mining standards in mining equipment, ASIC chipsets & mining strategies akin to what is in commercial use globally. Up until now, the bitcoin mining industry has mainly sought to achieve improved mining efficiency by optimising hardware and its integrated firmware.

The Company's R&D team of senior researchers from leading European universities has taken a different approach.