BitNile Holdings, Inc. a diversified holding company announced that its wholly owned subsidiary, BitNile, Inc. (“BNI”), has entered into a hosting agreement securing up to 78 megawatts (“MW”) of power with Agora Digital Holdings Inc. (“Agora Digital”), a majority-owned subsidiary of Ecoark Holdings Inc..
Agora Digital will initially provide up to 12 MW of electricity at their digital asset mining hosting facility located in Texas for BNI’s use. At BNI’s direction and Agora Digital’s expense, an additional 66 MW of power can be made available to BNI as determined by BNI, Agora Digital and the electricity provider. Agora Digital is required to raise at least $5 million to fulfill obligations under the Agreement to enable the build out of the hosting facility including the initial 12 MW of power.
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In conjunction with the ongoing expansion of BNI’s site in Michigan, the new hosting agreement is intended to maintain BNI’s plan to promptly install and operate the Bitcoin miners delivered by Bitmain Technologies Limited (“Bitmain”). The geographical distribution will also help BNI diversify the risk among its portfolio of mining equipment. BNI believes that the Agreement will enable it to initially power approximately 3,750 S19j Pro miners in the first quarter of 2023.
Milton “Todd” Ault, III, the Company’s Executive Chairman, stated, “We are excited about the new hosting relationship with Agora Digital. We believe this arrangement will lower our operational production cost, while increasing our total enterprise mining output.”
As previously disclosed, BitNile has entered into purchase agreements with Bitmain for a total of 23,065 Bitcoin miners, including 4,600 environmentally friendly S19 XP Antminers that feature a processing power of 140 terahashes per second (“TH/s”), 17,325 S19j Pro Antminers that feature a processing power of 100 TH/s and 1,140 S19 XP Hydro Antminers that feature a processing power of 255 TH/s. Once all of the miners are fully deployed and operational, BitNile expects to achieve a mining production capacity of approximately 2.66 exahashes per second.
The Company notes that all estimates and other projections are subject to the actual delivery and installation of Bitcoin miners, the ability of Agora Digital to raise the required capital within the time frames required, the ability of Agora Digital to build out and provide the necessary power, and other factors that may impact the results of production or operations.
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