Esports Entertainment Subsidiary to Launch Crypto Mining Application

The application will allow gaming computers to mine cryptocurrency while they are idle.
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Online gambling company Esports Entertainment Group  (GMBL)  said that a software firm it agreed to buy plans to launch a cryptocurrency mining application for gaming computers. 

ggCircuit is planning to launch ggFuze, a custom-built crypto mining application next month. The product will be offered to a pilot group of LAN centers.

LAN centers are businesses where gamers go to take part in multiplayer games. 

"Crypto mining during idle machine time is a request that many of our customers have been asking for and we are excited to be able to offer it as the launch application of our distributed computing product ggFuze," said ggCircuit CEO Zack Johnson.

Read More: Coinbase Is Here, Here's What Jim Cramer Says

ggCircuit is a B2B software company that provides cloud-based management for LAN centers and integrated wallet/point-of-sale solutions for enterprise customers. 

Esports Entertainment is a full stack esports and online gambling company that has grown along with the popularity of video-gaming and esports. The company has partnerships with the NFL, NBA, NHL and FIFA teams.

Esports Entertainment Group agreed to acquire ggCircuit and Helix eSports, which operates several eSports centers and helped develop the crypto mining application, in a combined transaction valued at $43 million. The deal is expected to close this quarter.

The microcap company has offices in New Jersey, the U.K., and Malta. Shares were falling 5.78% to $11.91 Thursday afternoon. 

Cryptocurrencies have been hot in recent months as bitcoin prices have surged more than six times in the last year. 

On Wednesday, Coinbase Global  (COIN) - Get Report, the largest U.S. cryptocurrency exchange, opened at $381 a share in its historic Nasdaq debut.

Jim Cramer has been following this public offering and gives his take on the valuation and broader implications of cryptocurrencies and Coinbase's role in its adoption.