Home Cryptocurrency News Free Bitcoins You can now rent a Kodak-branded bitcoin-mining rig — but you'll have to hand over half of the profits you make

You can now rent a Kodak-branded bitcoin-mining rig — but you'll have to hand over half of the profits you make

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Spotlite’s
bitcoin mining machine. Although on display at Kodak’s booth at
CES, it notably lacks a Kodak logo.
Matt Weinberger/Business Insider

  • The camera company Kodak is partnering with a company
    to get into bitcoin mining.
  • Kodak’s stock soared more than 100% on Tuesday after it
    announced it would launch a cryptocurrency.
  • Critics have attacked the company over the mining
    scheme amid fears of a cryptocurrency bubble.

Another day, another unusual company taking the dive into the
cryptocurrency space.

Kodak, the once iconic camera company, is licensing its brand to
Spotlite, which builds computers designed to mine bitcoin, for a
new line of bitcoin-mining machines that they plan to rent to the
public for thousands of dollars. Although just how associated
Kodak wants to be with the device is an open question.

On Tuesday, at Kodak’s booth at CES, the tech industry trade show
in Las Vegas this week, the company showed off the new mining
computer, then dubbed the Kodak KashMiner, and company’s
representatives handed out flyers to promote the arrangement with
Spotlite. The device on display and in the flyer had the Kodak
logo featured prominently.

But when we returned to Kodak’s booth on Thursday, Kodak’s logo
was noticeably missing from the bitcoin miners. Instead it
carried Spotlite’s brand.

kodak kashminer bitcoinThis is how the bitcoin
mining machine was depicted on a flyer Kodak handed out at CES.
Note the “Kodak” logo.
Matt
Weinberger/Business Insider

In addition to still trying to figure out the branding on the
miner, the companies are also apparently still trying to figure
out the terms under which they’ll rent the machines to customers.

On the flyer, the companies said they’d ask prospective customers
to sign a two-year deal and pay $3,400 up front to rent the
mining machines, which are used to support the bitcoin network
and create new coins. As part of the agreement, Spotlite would
gets to keep half of all proceeds the machines generate by mining
bitcoin.

Spotlite and Kodak estimated customers would earn $375 a month,
making $9,000 over the two-year rental period.

But a Kodak representative later said the deal terms were
preliminary and weren’t necessarily what the companies would
offer customers.

kodak kashminer bitcoinThe inside of the flyer
details the terms of Kodak’s deal.
Matt Weinberger/Business Insider

After seeing the announcement and the terms in the flyer, some
people harshly criticized the new service on Twitter. Some argued
that Kodak’s jumping into bitcoin mining was evidence of a bubble
in cryptocurrencies. Others said that because mining bitcoin
gradually becomes more difficult over time, Kodak KashMiner
customers may see far smaller returns than they anticipated.

Such concerns, however, haven’t put off some customers —
Spotlite’s existing capacity is already sold out, a representative
told the BBC
.

“At this time we have 80 miners, and we expect another 300 to
arrive shortly,” the representative said. “There is a big pile-up
of demand.”

The new bitcoin-mining rental service was one of two
blockchain-related announcements from Kodak at CES on Tuesday.

The company also said it would team up with Wenn Digital to
launch
a blockchain-based rights-management service and related
cryptocurrency
. The service is aimed at tracking the online
use of licensed photographs and ensuring photographers get paid
for their works.

Kodak’s stock skyrocketed more than 117% on Tuesday.

The company is the latest to see its stock soar after announcing
bitcoin- or blockchain-related news. Shares of Long Island Ice
Tea Corp. tripled in price after it renamed itself Long
Blockchain last month, and those of a franchisee of the Hooters
restaurant chain
jumped last week
after it said it would move into the space.

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