4. Cryptocurrencies

On January 3, 2018, the Company purchased $100,000 of ether (106.95 units), the cryptocurrency offered by the Ethereum network. The fair value of such ether units on June 30, 2018 was $46,627 and the Company took a charge to operations of $53,364 in the six months ended June 30, 2018. That amount is included in gain/loss on the fair value of cryptocurrencies in the accompanying statement of operations.

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, in June 2018, expanded into the mining of ether. The revenue generated is valued by the cryptocurrency fair value on the date earned. Such amounts aggregated $8,917 for the six months ended June 30, 2018. The fair value of the earned cryptocurrency is adjusted at quarter end, resulting in a charge to operations.