Chinese blockchain-based e-commerce company Future Fintech reported last Wednesday, April 14 that the company signed an equity acquisition framework agreement with mining farm operator Mingtang Network Technology Co. Future Fintech is set to claim 51% equity interest from shareholders.
Future Fintech signed the agreement to acquire Mingtang Network’s cryptocurrency mining farm that can process and collect significant numbers of data. The data centre of Mingtang Network is said to have a 50,000 capacity load for mining machines as well as 300,000 sets of mechanical and electrical equipment. The big number of equipment is said to help the company run big mining applications.
The signed agreement states that Future Fintech will pay RMB 45.9 million or USD 7 million for 51% of Mingtang Network’s equity. The price is based on a valuation of 100% of Mingtang Network of RMB 90 million. However, the final price for the payment is yet to be decided. The final price will be decided upon the completion of Mingtang Network’s financial analysis. As of now, both parties are still waiting for a definitive agreement.
‘We are excited about the cryptocurrency mining farm sector and believe that it will continue to achieve further growth and real-world economic viability. We intend to continue to purchase cryptocurrency mining machines, make additional acquisitions of cryptocurrency mining farms and promote the development of secure and evolutionary cryptocurrency applications. Our goal is to become one of the world’s leading cryptocurrency mining enterprises,’ stated Shanchun Huang, chief executive of Future Fintech.
Meanwhile, chairman of the Mingtang Network Xiang Lin also expressed his opinion on the matter.
‘Mingtang Network’s data centre has approvals for land planning, environmental assessment, land occupation assessment and state grid power access. Importantly, the partner supplying the electricity for our data centre is a branch of the China state grid, which has the advantage of providing an ample power supply at a low cost,’ he said.
Mingtang Network believes that its current operation delivers high-quality data on scaling, engineering and production standards. The company is said to communicate and work closely with Future Fintech to expand their market share and also provide the best returns they can give to their shareholders.
The framework agreement is non-binding. However, the sections ‘Confidentiality and Exclusivity’ and ‘Applicable Law and Dispute Resolution’ are the exceptions to the agreement’s provisions.
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