I don't think SMA will be purchasing any more Bitcoin software as there can only be 1 Bitcoin software (the digital wallet) to work with ALL Bitcoin contracts. I assume you are referring to new contract?
Bitcoin mining contract is essentially the dollar value. When SMA says it is spending $250,000 on a Bitcoin mining contract it means the company is literally using that much to buy the Mining machines or the Mining power.
There is a difference between "Mining Machine" or "Mining Power". To start Bitcoin Mining, you don't really need a machine. You can just buy the power which many companies are offering for those interested in the Bitcoin Mining. With the power, you are able to start mining immediately. There is no physical machine to muck around with. The machines are hosted by a third party company that provides Mining power as a product to Customers. We normally refer to this type of Mining as "Hosted Mining" or "Cloud Mining".
Mining with a physical machine is a complex task and unlike Computer servers, the machines consume more than 3 times the amount of electricity. They are also prone to cyber attack for those who do not have experience in maintaining/administrating them.
Unfortunately what SMA doesnt tell us is whether it is using a hosted mining or an in-house mining.
Hosted mining is slow and the amount of Bitcoin it can mine normally depletes every week. Yes, every week! So to maintain a constant frequency of bitcoin generation on daily basis, SMA needs to top up more $$$ periodically.
SMA Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
