BIT Mining Limited, a leading technology-driven cryptocurrency mining company, today announced that it has strengthened its collaboration with Viking Data Centers, LLC (“Viking Data Centers”). The Company will increase its investment in the Ohio cryptocurrency mining data center (the “Ohio Mining Site”), which is being jointly developed with Viking Data Centers, to add up to 65 megawatts (“MW”) of power capacity in addition to the 85MW per the original design, bringing the Ohio Mining Site’s total planned power capacity up to 150MW.
As previously announced, the Company entered into an agreement with Viking Data Centers on September 22, 2021 to jointly develop the Ohio Mining Site. BIT Mining decided to strengthen its collaboration with Viking Data Centers and increase the Ohio Mining Site’s size and total power capacity based on the Company’s assessment of the current business and regulatory environment, as well as the strength of the Ohio Mining Site development team and the project’s anticipated cost efficiency. The Ohio Mining Site is planned to be completed by March 2022.
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BIT Mining will increase its investment by approximately US$11.0 million (the “Increased Investment”), US$9.8 million of which will be paid in cash and the remaining US$1.2 million, payable to Viking Data Centers will be settled either in cash, or in the form of Class A ordinary shares, par value US$0.00005 per share of the Company, at the Company’s discretion. Upon the successful execution of the Increased Investment, the Company’s equity interest in the Ohio Mining Site will be increased to 55%, and Viking Data Centers will hold the remaining 45%. The Increased Investment will fund the buildout of the 65MW of additional power capacity. This will be developed in two phases, with 25MW in the first phase and 40MW in the second. The parties currently expect to reach these power capacity milestones by February 15, 2022 and March 31, 2022, respectively.
The transactions contemplated by the Increased Investment are subject to customary closing conditions.
The Company intends to devote more resources to developing the Ohio Mining Site, in light of its better cost control and operational efficiency. The Company has also terminated its Texas cryptocurrency mining data center cooperation with Dory Creek, LLC, and will limit power capacity at its Kazakhstan cryptocurrency mining data center to 40MW, to optimize the cost-effectiveness of its data center deployment. Upon completion of the cryptocurrency mining data centers in Ohio and Kazakhstan, BIT Mining expects that, by March 2022, its cryptocurrency mining machines will have access to a total power capacity of up to 190MW.
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“The progress made to date with our global expansion strategy has been very encouraging,” commented Mr. Xianfeng Yang, CEO of BIT Mining. “Our multi-site approach and geographic diversification has provided us with greater flexibility to shift resources and capitalize on regions with more favorable market dynamics, and over time, generate greater returns for stakeholders. We will continue to execute on our plan, investing in technology, innovation and high-quality mining resources around the world, while building a strong foundation across the cryptocurrency ecosystem.”
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