LQR House explores bitcoin mining strategy with Bitmain equipment

MIAMI BEACH - LQR House Inc. (NASDAQ:LQR), an e-commerce platform specializing in spirits and beverages with a market capitalization of $11.4 million, announced Thursday it is in advanced discussions to invest in Bitmain mining machines that would be deployed at mining farms operated by Polaris Capital in Texas. The company’s stock has shown remarkable momentum, surging over 440% in the past week according to InvestingPro data.

The company, which has already secured a Coinbase Prime account for institutional-grade custody, is pursuing mining as part of its cryptocurrency treasury strategy previously approved by its board of directors. With a healthy current ratio of 3.68, LQR House maintains strong liquidity to support its strategic initiatives.

Rather than purchasing Bitcoin directly, LQR House is exploring what it calls a "mining-first approach" that it believes could provide greater long-term benefits by generating Bitcoin directly while retaining full ownership of mined coins.

"We see mining as a more strategic and efficient way to gain exposure to Bitcoin," said Sean Dollinger, LQR House CEO, according to the company’s press release.

The proposed deployment would allow LQR House to leverage established infrastructure without building or operating facilities independently.

The company listed potential advantages including full ownership of mined Bitcoin, potentially lower effective costs compared to market purchases, and ongoing Bitcoin accumulation.

LQR House noted that the investment in Bitmain equipment and any agreements with Bitmain Technologies Ltd. and Polaris Capital remain subject to execution of definitive agreements, corporate approvals, customary closing conditions, and regulatory approvals.

The company emphasized there is no assurance that definitive agreements will be reached or that the transactions will be completed as described. While LQR House projects 68% revenue growth, InvestingPro analysis reveals multiple additional insights about the company’s financial health and growth prospects. Subscribers gain access to over 15 exclusive ProTips and comprehensive financial metrics to make informed investment decisions.

In other recent news, LQR House Inc. has announced a third purchase order from Ontario-based Of The Earth Distribution Corp. for 176 cases of SWOL Tequila. This order introduces a new 9-bottle case format and enhanced bottle design, aimed at boosting the product’s presence in the Canadian market. The distributor has expanded its reach by adding 40 new on-premise accounts in Ontario’s hospitality sector. Meanwhile, LQR House is facing legal challenges as it and its board have been named in a lawsuit filed by Kingbird Ventures, LLC. The lawsuit, submitted in Nevada, alleges breach of fiduciary duties and seeks to freeze LQR House’s assets, among other requests. The company has stated that it has not been served with the complaint and is unaware of Kingbird Ventures’ identity. LQR House plans to defend itself, citing numerous factual inaccuracies in the complaint. These developments highlight both the company’s business progress and legal hurdles.

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