• Kodak, the camera company, is joining forces with a company to start mining Bitcoin
• Kodak’s stocks shot up by over 100% on Tuesday after it announced that it would unveil a Cryptocurrency
• Critics are up in arms against the camera manufacturer over the mining plans in the backdrop of the uncertain Cryptocurrency future
Kodak is the latest company that has shown interest in venturing into the Cryptocurrency world. This renowned camera company is partnering with Spotlite with the plans to launch a new line of machines for Bitcoin mining, which will be rented out to the public for several thousands of dollars. Spotlite is a company that specializes in making computers that are designed to be used for Bitcoin mining purposes. However, it is not very clear just how much Kodak intends to be involved with the whole project.
CES Trade Show
This January, during the tech industry trade show CES that was held in Las Vegas, Kodak showcased the new mining machine named Kodak KashMiner at the company’s booth and their employees distributed flyers to create awareness about the collaboration with Spotlite. The computer, as well as the flyer, bore the logo of Kodak. Later on Thursday of the same week, Kodak’s logo was visibly missing from the mining computers that were being displayed at the booth. It had been replaced with Spotlite’s logo.
It appears that the two companies are trying to decide on the best branding for the miners and at the same time they are trying to decide on the terms they will use when renting the machines to customers that they will.
According to the information on the flyer, the companies relayed that they would require the potential customer to sign a contract of 2 years and pay as much as $3,500 before renting the mining computers. These miners can support the Bitcoin network and make new coins. The agreement also stipulates that Spotlite gets to take 50% of all the earnings generated by the computers when mining Bitcoin.
Kodak and Spotlite forecasted that customers would stand to earn $375 every month and make $9,000 by the end of the two years that they would have rented it.
One of the Kodak representatives pointed out that the terms of the deal have not been fully agreed upon by the two companies and they are just preliminary hence they might change later when the product is made available to the public.
Soon after the flyer started circulating among the population, some people criticized the new product on social media. Some Twitter users said that Kodak’s unexpected move of joining the Bitcoin mining industry is a clear sign that Cryptocurrencies are a bubble. Others pointed out that Bitcoin mining becomes harder over time hence the companies’ claims that customers will generate $375 in a month is not sustainable. Therefore, customers will be disappointed. Others have warned people against investing in these miners saying that it is a rip-off.
Surprisingly, these comments have not deterred some customers and reports indicate that the miners that Spotlite had in stock have already sold out. According to a company representative, the company is rushing to make more KashMiners to meet the increasing demand.
Besides this announcement, Kodak also made another declaration at CES on Tuesday early this month. It said that it would partner with Wenn Digital to introduce into the market a rights management service that is Blockchain based and other related Cryptocurrencies. The objective of the service is to track how licensed photographs are used online and ensure that photographers get their dues. Kodak’s stock rose more than 117% after the announcement on Tuesday.
Bitcoin Changing Companies Fortunes
Kodak has joined the list of other companies that experienced a boost in their stock prices after announcing Bitcoin or Blockchain based news. The others on the list are Hooters restaurant chain, and Long Island Ice Tea Corp.