Vancouver junior mine company Alix Resources Corp. (TSX-V:AIX) is planning to diversify by staking a claim in the emerging cryptocurrency space with a Bitcoin exchange.
Alix Resources has struck a deal in which it will pay Ridge Resources Ltd. for exploratory work on its Windy Property near Cassiar in Bitcoins. Alix's Windy Property is a tungsten deposit. Alix will pay Ridge Resources for things like mapping and sampling in Bitcoin, when the work is concluded.
Alix Resources president Michael England told Business in Vancouver the company will use the transaction to get into the Bitcoin space.
The company plans to open a new Bitcoin exchange. Currently there are just two in Canada, including Vancouver's Bitcoiniacs.
"It's something that's been in my head for quite a while – how to get the junior mining sector involved in this," England said.
Bitcoin is a decentralized digital currency that is not controlled by any bank or nation and is traded directly on a peer-to-peer basis.
The value of Bitcoin has been going through the roof, raising concerns it is a bubble currency that will eventually pop. Others view its increasing value as a sign that Bitcoin has become a viable alternative currency.
Less than two weeks ago, Bitcoins were selling for $210. Today, they are selling for $360.
"I think it's going to be more than a bubble and that's why we want to do the exchange as well," England said. "We're not doing a change of business just yet. We're still a junior mining exploration company. But down the road, we'll embrace a change of business, if this goes as well as I think it will."
