While it is true that the markets have been quite volatile in recent times, there are still some sticks that have managed to go against the tide and clocked meaningful gains. One such stock was that of LUXXFOLIO Holdings Inc (OTCMKTS:LUXFF), which came into sharp focus among investors on Friday and ended the day with gains of as much as 13%. Before delving into the reasons behind the rally and if it could sustain over the coming days, it may be a good idea to first take a closer look at the operations of the company.
Trading Data
On Friday, LUXFF stock moved up 12.83% to $0.0940 with more than 25K shares, compared to its average volume of 56k shares. The stock moved within a range of $0.0902 – 0.0950 after opening trade at $0.0902.
About The Company
 LUXXFOLIO runs a vertically integrated digital assets firm based out of Canada. However, LUXXFOLIO is best known currently for having its own industrial size cryptocurrency mining facility in the United States. The facility is run primarily by renewable energy and is focused on strengthening the crypto ecosystem as well as generating digital assets.
In addition to that, the company is also known for providing the wider capital markets with the option of having exposure to digital assets. As it happens, the company was in the news this past Friday and the news seemed to have come as a source of positivity for investors as well. It is now time to take a closer look into it. The company announced that it had taken another significant step that would help in its efforts to optimize its operations more meaningfully.
LUXXFOLIO to Launch Immersion Mining while Reducing Debt and Optimizing Operations
LUXXFOLIO announced on Friday that it had been successful in concluding the sale of as much as 100 Petahash of mining power, which translated into as many as 970 cryptocurrency mining machines.
In this context, it ought to be noted that as part of the sales agreement, the miners who are going to be engaged in the operations will be hosted by LUXXFOLIO. The miners will be operating as part of an immersion hosting agreement that is going to be in place for two years. However, there is another important aspect of the sale that needs to be considered. Now that the sale has been completed, it reduced the debts at LUXXFOLIO by as much as $3200000. In addition to that, it is going to enable the company to mine Bitcoin with the help of the miners who are going to be part of the immersion hosting agreement and on top of that, it would continue to generate revenues by way of hosting fees.
The company noted that as the crypto market continues to come under pressure, this was part of a move from LUXXFOLIO to make its business more efficient and ease the pressure somewhat. Ken MacLen, who is the President of the company noted that the step is going to help LUXXFOLIO in getting into a better position financially under the current market conditions. He went on to note that entry into immersion technology is a new era in the world of the mining industry since it is going to help in providing higher efficiency for the current generation of miners at the company.
