5. Cryptocurrencies

On January 3, 2018, the Company purchased $100,000 of ether (106.95 units), the cryptocurrency offered by the Ethereum network. In April 2018, the Company began its mining operations. The Company is paid in cryptocurrency for these operations. It started out mining Bitcoin and later, expanded into the mining of Ether, Litecoin and Raven. The Company currently only mines Bitcoin. The revenue generated is valued by the cryptocurrency fair value on the date earned. Such amounts aggregated $4,813 for the three months ended March 31, 2019.

The Company has utilized its cryptocurrency holdings to satisfy certain trade payables either via direct payment to vendors of cryptocurrency or by conversion of cryptocurrency to cash. The Company recognizes gain or loss at the time of the disposition of the cryptocurrency assets, which is the difference of the then fair value versus book value. The Company recognized $4,612 in net loss on disposition of cryptocurrencies in the three months ended March 31, 2019.