LPE wants its $5m back after walking away from ‘risky’ crypto
Sunshine Coast based electricity supplier LPE has scrapped its plans to get into crypto mining.
The company said it was in a de-risking phase and the crypto environment had become too volatile.
Last year the company raised $7.5 million to fund a role in a bio energy hub near Bundaberg. The deal meant the company would be eventually mean that a $5 million spend in capital works at the site would result in a 50 per cent stake in Stak Mining, a crypto miner that was a tenant at the hub.
Today, LPE chair Justin Pettett forecast the company had terminated its crypto plans and was negotiating a return of the $5 million.
“With crypto currencies enduring extreme volatility during review period, coupled with a substantial deterioration in the valuations of crypto miners globally, the board informed Stak Mining that LPE will not exercise its option to acquire a 50 per cent stake,” the company said.
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“As a result, the board is now working with Bundaberg BioHub to secure the early repayment of the $5m capital works funds.”
Instead, the company is now investigating value-adding, bolt-on companies in the energy sector.
