AGM Group Holdings Inc. Announces Investment in Bitcoin Mining Equipment

Rhea-AI Summary

AGM Group Holdings (NASDAQ: AGMH) has entered into a purchase agreement through its Hong Kong subsidiary AGM Technology to acquire 2,000 Bitcoin mining machines from Canaan Creative Global. The agreement, effective December 1, 2024, also includes an option to purchase up to 30,000 additional BTC mining units with a combined power capacity not exceeding 300 megawatts, valid until December 31, 2025.

This strategic investment aligns with AGM Holdings' long-term vision to focus on the digital assets market and advance innovative technology. The company aims to strengthen its presence in the cryptocurrency sector by leveraging its expertise in hardware and software solutions.

Positive

• Secured purchase of 2,000 Bitcoin mining machines
• Option to acquire additional 30,000 BTC mining units until December 2025
• Strategic expansion into cryptocurrency mining sector
• Partnership with established ASIC technology provider Canaan

Negative

• Significant power consumption requirements (up to 300 megawatts)
• Large capital investment required for mining equipment
• Exposure to volatile cryptocurrency market

Insights

Financial Analyst

This strategic investment in 2,000 BTC mining machines marks a significant pivot for AGM Holdings into the cryptocurrency sector. With a market cap of just $41.7M, this substantial hardware acquisition and the option for 30,000 additional units represents a major commitment to blockchain technology. The timing is particularly interesting as it comes during a period of increased institutional interest in Bitcoin mining, following the recent BTC price recovery. The 300 megawatt power capacity option suggests ambitious scaling plans, though investors should note that success will heavily depend on Bitcoin price movements, mining difficulty adjustments and energy costs. The partnership with Canaan, a respected ASIC manufacturer, adds credibility to the venture, but the capital-intensive nature of this expansion could significantly impact AGM's balance sheet.

Tech Expert

The selection of Canaan as the hardware provider is strategically sound, given their pioneering role in ASIC mining technology and established market presence. The 300 megawatt power capacity option indicates potential for a substantial mining operation that could position AGM Holdings as a significant player in the crypto mining space. This move leverages AGM's existing expertise in high-performance computing equipment assembly, creating natural synergies. The gradual approach - starting with 2,000 units and maintaining expansion options - demonstrates a measured strategy that allows for operational optimization before larger-scale deployment. This flexibility is important in the volatile crypto mining sector where profitability is heavily influenced by market conditions and energy efficiency.

Beijing, Dec. 12, 2024 (GLOBE NEWSWIRE) -- AGM Group Holdings Inc. (“AGM Holdings” or the “Company”) (NASDAQ: AGMH), an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment, has announced today that the Company, through its wholly owned Hong Kong subsidiary AGM Technology Limited, entered into a purchase agreement (the “Agreement”) to acquire 2,000 units of Bitcoin (“BTC”) mining machines from Canaan Creative Global Pte Ltd. (“Canaan”), a Singapore-based company. This transaction strategically aligns with AGM Holdings’ long-term vision to focus on the rapidly evolving digital assets market and to further advance innovative technology.

Pursuant to the Agreement, the purchase of the 2,000 BTC miners became effective as of December 1, 2024. Additionally, the Company has secured an option to acquire up to approximately 30,000 additional BTC mining units, with a combined power capacity not exceeding 300 megawatts, valid until December 31, 2025.

This significant milestone underscores AGM Holdings’ commitment to strengthening its market presence in the fast-growing cryptocurrency sector. By capitalizing on the increasing demand for digital assets and leveraging its expertise in hardware and software solutions, the Company is well-positioned to capture emerging opportunities within the cryptocurrency and blockchain industries, driving sustainable growth and value creation for its stakeholders.

Canaan is a wholly owned subsidiary of Canaan Inc. Established in 2013, Canaan Inc. is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan Inc. has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market where it trades under the ticker CAN.

About AGM Group Holdings Inc.

AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment. With a mission to become a key participant and contributor in the global blockchain ecosystem, AGMH focuses on the research and development of blockchain-oriented Application-Specific Integrated Circuit (ASIC) chips, the assembling and sales of high-end crypto miners for Bitcoin and other cryptocurrencies. For more information, please visit www.agmprime.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:
AGM Group Holdings Inc.
Email: ir@agmprime.com
Website: http://www.agmprime.com

Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

How many Bitcoin mining machines did AGMH purchase in December 2024?

AGM Group Holdings (AGMH) purchased 2,000 Bitcoin mining machines from Canaan Creative Global, effective December 1, 2024.

What is the additional mining unit option available to AGMH?

AGMH has secured an option to acquire up to 30,000 additional Bitcoin mining units with a combined power capacity of 300 megawatts, valid until December 31, 2025.

Who is AGMH's supplier for the Bitcoin mining equipment?

AGMH's supplier is Canaan Creative Global Pte , a Singapore-based subsidiary of Canaan Inc., a Nasdaq-listed company specializing in ASIC computing chip design and production.

What is the strategic significance of AGMH's Bitcoin mining investment?

The investment aligns with AGMH's long-term vision to focus on the digital assets market, strengthen its presence in the cryptocurrency sector, and leverage its hardware and software expertise.