The9 Limited [NASDAQ: NCTY] has initialed six legally binding Memorandums of Understanding (MOUs) with six unrelated Bitcoin mining machine owners. The firm has signed the MOUs to buy the bitcoin mining machines by the granting of Class A ordinary shares.
As per the MOUs, The9 Limited will grant nearly 7,178,160 Class A ordinary shares to the sellers based on The9 share price of US$23.35 before the MOUs, with a predetermined amount of time of 6 months.
This collection of Bitcoin mining machines includes various brands such as AvalonMiner WhatsMiner and AntMiner and have a total number of 10,489 units and a total hash rate of nearly 251PH/S. Furthermore, these machines have already been implemented in Xinjiang, Inner Mongolia, and Qinghai.
To conduct the proper examination of bitcoin machines, The9 Limited will appoint an independent assessment firm to carry out the analysis. Moreover, the firm will also grant additional Class A shares if needed. The China-based firm is also planning to sign the contract within one month after signing the MOUs.
The firm has also disclosed that it has finalized the agreement for the last collection of 26,007 Bitcoin mining machines in accordance with fair market value on the valuation report issued by an independent valuation firm. Additionally, The9 share price of US$11.18 before the corresponding MOU signing date. The9 will grant a total number of 26,838,360 Class A ordinary shares to the sellers, with a predetermined period of 6 months.
The9 Limited revealed that after the execution of these purchases the firm will become the owner of 6,496 Bitcoin mining machines, and the total hush rate will reach nearly 800PH/S. Additionally, the unit of The9, NBTC Limited, has also entered into an agreement with Shenzhen MicroBT Electronics Technology Co., Ltd. at the start of February 2021. After the finalization of the agreement, the hush rate will also increase as expected by The9 Limited.