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To avoid receivership, Blade mined Ethereum on its servers

Before its takeover by Octave Klaba, the Blade company had used its infrastructure to mine Ethereum. 1.6 million euros were thus generated by the operation, an insufficient sum to avoid the recovery procedure.

The former leadership of Blade was desperate to avoid receivership. Really everything! In one tweet finally erased, Octave Klaba, founder of OVH and HubiC (became Blade’s parent company) confirmed that before the takeover of the publisher of Shadow, part of the company’s infrastructure was used for mining Ethereum.

941 ETH mined

Around 22,300 servers spread over 7 data centers were used between December 13, 2020 and May 19, 2021 to generate cryptocurrency, via the Nanopool mining pool. According to the audit carried out by the Eight advisory firm on behalf of the new management of Blade, as of May 19, a total of 941 ETH had been created by the company’s servers.

In all, 1.6 million euros from this highly confidential Ethereum activity were used for recovery procedures in France and the United States, described Next INpact which was the first publication to raise the hare. On average, the sum represents 1,793 euros per ETH, less than the price of the crypto in mid-May (3,400 euros), but more than in December when it was 450 euros.

Could the company have avoided receivership thanks to Ethereum? Probably not: Blade had embarked on a very risky growth strategy with very affordable subscriptions, but without having sufficient server capacities to meet demand. This resulted in a fall in the cash flow, leading to the disaster that we know.

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