AirNet Announces Purchase of Cryptocurrency Mining Machines

Rhea-AI Summary

AirNet Technology (Nasdaq: ANTE) announced the purchase of 6,218 Bitcoin Miner S21 units for approximately RMB177.2 million, as per a sales and purchase agreement with a third party on May 30, 2024. The company aims to capitalize on the bullish cryptocurrency market by investing in these assets. However, the deal is contingent upon necessary corporate approvals and closing conditions, and there is no certainty regarding the transaction's consummation or the operational commencement of the miners. The company cautions shareholders against placing undue reliance on this announcement.

Positive

• AirNet Technology plans to invest in the promising cryptocurrency market.
• The company is purchasing 6,218 Bitcoin Miner S21 units, indicating a significant investment.
• The aggregate purchase price for these miners is approximately RMB177.2 million.
• Focus on the bullish trend in the Bitcoin market to capture market opportunities.

Negative

• The transaction is subject to requisite corporate approvals and customary closing conditions.
• There is no assurance that the transaction will be consummated in a timely manner or at all.
• Uncertainty about when the miners will begin generating economic returns.
• Shareholders are cautioned not to place undue reliance on the announcement.

Insights

Financial Analyst

AirNet Technology Inc.'s decision to purchase 6,218 Bitcoin Miner S21 units at an aggregate cost of RMB177.2 million signals a significant investment shift towards cryptocurrency mining. This move is predicated on the expectation of continuing bullish trends in the Bitcoin market. The total investment amounts to around 25 million USD at current exchange rates, indicating a substantial allocation of resources. However, investors should weigh the risks associated with this venture. The cryptocurrency market's volatility and regulatory uncertainties can affect the potential returns. Moreover, the announcement cautions about the completion and operation timelines, which introduces additional layers of uncertainty. For stakeholders, this investment could potentially yield high returns if the Bitcoin bull market persists, but the risks are considerable.

Market Research Analyst

The acquisition of cryptocurrency mining machines by AirNet Technology suggests a strategic pivot towards the digital asset sector. The company's move to capitalize on the rising Bitcoin market underscores the broader industry trend of diversification into cryptocurrencies. However, the long-term success hinges on market conditions and the efficiency of these miners. The announcement notes that the transaction is contingent on several approvals and conditions, highlighting the speculative nature of this investment. Retail investors should consider the inherent risks of the cryptocurrency market, including price volatility and regulatory changes. The investment in mining infrastructure could pay off significantly if Bitcoin prices continue to rise, but it also poses the risk of substantial losses if the market turns bearish.

BEIJING, May 31, 2024 /PRNewswire/ -- AirNet Technology Inc., formerly known as AirMedia Group Inc. ("AirNet" or the "Company") (Nasdaq: ANTE), today announced that the Company entered into a sales and purchase agreement with an unaffiliated third party for the purchase of 6,218 units of Bitcoin Miner S21 on May 30, 2024. The aggregate purchase price for these miners is approximately RMB177.2 million.

In view of the broad prospects of the global cryptocurrency field, especially the bull market performance of the Bitcoin market, the Company plans to invest in encrypted assets to lay out in advance in order to capture the market opportunities. The transaction is subject to the completion of the requisite corporate and other approvals and customary closing conditions. There can be no assurance that the transaction will be consummated in a timely manner, or at all. To the extent that the transaction is consummated, there is no guarantee when these miners will be in operation to generate economic returns, or at all. The shareholders are cautioned not to place undue reliance on this announcement.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements are based upon management's current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company's control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Contact

Penny Pei
Investor Relations 
AirNet Technology Inc. 
Tel: +86-10-8460-8678 
Email: penny@ihangmei.com 

View original content:https://www.prnewswire.com/news-releases/airnet-announces-purchase-of-cryptocurrency-mining-machines-302160372.html

SOURCE AirNet Technology Inc.

FAQ

What did AirNet Technology announce on May 31, 2024?

AirNet Technology announced the purchase of 6,218 Bitcoin Miner S21 units for approximately RMB177.2 million.

What is the significance of AirNet's purchase of Bitcoin Miner S21 units?

The purchase signifies AirNet's strategic investment to capitalize on the bullish cryptocurrency market.

What is the total cost of the Bitcoin miners purchased by AirNet?

The total cost of the 6,218 Bitcoin Miner S21 units is approximately RMB177.2 million.

What conditions apply to AirNet's purchase agreement?

The transaction is subject to corporate approvals and customary closing conditions, with no assurance of timely or eventual consummation.

What caution did AirNet issue to its shareholders?

AirNet cautioned shareholders not to place undue reliance on the announcement due to uncertainties surrounding the transaction and operational commencement of the miners.