- Camera company Kodak is partnering with a company to get into bitcoin mining.
- Its stock soared more than 100% on Tuesday after it announced it was launching its own 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 specifically designed to mine bitcoin, for a new line of bitcoin mining machines. The two companies plan to rent use of the machines to the public for thousands of dollars.
On Tuesday, at Kodak’s booth at CES, the tech industry trade show going on in Las Vegas, representatives of the company handed out flyers to promote the arrangement and the new mining computer, dubbed the Kodak KashMiner.
Kodak and Spotlite are asking potential customers to sign a two-year deal and pay $3,400 upfront to rent the mining machines, which are used to support the bitcoin network and create new bitcoins. As part of the agreement, Spotlite gets to keep half of all proceeds the machines generate by mining bitcoin.
Spotlite and Kodak estimate customers will earn $375 a month — making $9,000 overall over the two-year rental period.
A Kodak representative did not immediately respond to Business Insider’s request for comment about the arrangement.
But some Twitter users harshly criticized the new service on the social network. Some argued that Kodak jumping into bitcoin mining was evidence of a bubble in cryptocurrencies. Others pointed out that because the difficulty of mining bitcoin gradually increases over time, Kodak KashMiner customers may see far smaller returns than they anticipated.
Among the reactions:
There is no way your magical Kodak miner will make the same $375 every month, unless Bitcoin Read More Here