Hello Pal International Inc a provider of international live-streaming, social-crypto and language learning mobile apps, acquires fifty-one percent (51%) interest in Crypto Pal Technology Ltd. (“Crypto Pal”) that closed on May 25, 2021 (see news release dated May 25, 2021).
Financial Benefits of Acquisition includes Purchase Price for Crypto Pal was based on Dogecoin at US $0.055, Low acquisition cost of $3.5 million, consisting of $1.5 million cash and 1,800,000 units.
Cost to mine Dogecoin and Litecoin significantly less than Bitcoin.
It will also provide Hello Pal with primary exposure to Dogecoin, while the access to cryptocurrency will accelerate growth of user base and livestream revenues.
Hello Pal Founder and Chief Executive Officer, KL Wong states, “Our acquisition of Crypto Pal is the next step in bringing the world closer together and promoting social tolerance. Dogecoin, often referred to as “the people’s coin”, is being rapidly accepted and adopted internationally. We anticipate gains to our userbase and livestreaming services from the integration of Dogecoin.”
KL Wong further adds, “By acquiring Crypto Pal at a minimal price, we are able to focus our strong cash position to implement our vision for Hello Pal’s suite of complementary apps as well as carry out strategic acquisitions.”
The recently acquired Crypto Pal currently has 12,500 mining rigs that are actively mining Dogecoin and Litecoin. The mining rigs are hosted across multiple locations to ensure diversification of risk as well as to take advance of variations in electricity costs in different geological areas according to seasonal weather patterns. Crypto Pal has entered into a long-term guaranteed service agreement with Yitang Data Technology Co. Ltd. (“Yitang”), a seasoned manager and operator of crypto-assets and mining facilities. With Yitang engaged on a long-term basis, Crypto Pal has ensured cost certainty and operational continuity relating to the mining of Dogecoin and Litecoin.
As a result of Hello Pal’s acquisition of Crypto Pal, it is believed that it is currently the sole listed issuer primarily focused on mining Dogecoin. Hello Pal anticipates that Dogecoin will continue to be seen as an alternative to Bitcoin given its lower price, ease for making online payments, and a much lower power requirement in mining it.
Hello Pal is currently updating its platform to integrate the obtaining and using of cryptocurrency within the Hello Pal ecosystem. As Hello Pal’s livestreaming operations cover a diverse range of regions throughout the world, Hello Pal anticipates that the introduction of cryptocurrency will accelerate the use of its livestreaming services outside of China. In particular, this will facilitate growth in less developed countries where extreme exchange rate fluctuations occur and it is difficult for users to pay or receive local currencies.