Bit Brother Increased Its Investment in Blockchain Field and Entered Brokerage Agreement to Purchase 400 Mining Rigs with Estimated Hash Rate of 40,000 TH/S

Rhea-AI Summary

Bit Brother Limited (NASDAQ: BTB) announced a brokerage agreement with Blockworx1, LLC to acquire 400 S19J Pro cryptocurrency mining servers, enhancing its capabilities in the blockchain sector. Each server is expected to have a hash rate of approximately 100 TH/S, totaling a potential output of about 0.6065 BTC daily or 18.19 BTC monthly upon full operation. This acquisition brings Bit Brother's total operational servers to 1,800, indicating a significant investment aimed at boosting its mining capacity. However, the company acknowledges risks associated with cryptocurrency mining, including regulatory and operational challenges.

Positive

• Acquisition of 400 S19J Pro mining servers increases operational capacity to 1,800 servers.
• Estimated BTC production of 0.6065 BTC per day or approximately 18.19 BTC per month.
• Investment strengthens position in the growing blockchain sector.

Negative

• Potential risks associated with regulatory oversight of cryptocurrency mining.
• Uncertainties in effectively managing the new cryptocurrency mining business.
• Dependence on reliable power supply and risk of increased operating costs.
• Possible disruptions due to server security breaches or mining facility failures.
• Exposure to fluctuations in cryptocurrency prices.

CHANGSHA, China, Jan. 27, 2023 /PRNewswire/ -- Bit Brother Limited (the "Company," "we", "BTB" or "Bit Brother") (NASDAQ: BTB), through its subsidiary Bit Brother New York Inc ("BTB NY"), entered into brokerage agreement with Blockworx1, LLC to purchase 400 S19J Pro cryptocurrency mining servers . All 400 servers are expected to be delivered within 21 days. Each server has a hash rate of approximate 100 TH/S. As of today, BTB NY has 1,400 S19J Pro in operation. With the additional 400 servers, by using the data from Ultimuspool, a mining pool solution provider, and the settlement method of Full Pay Per Share (FPPS), we estimate that our servers can generate a total value of 0.6065 BTC per day, and thus approximately 18.19 BTC per month, assuming all these machines operate as expected.

About Bit Brother Limited 

Bit Brother Limited (formerly known as Urban Tea, Inc.) was incorporated in the British Virgin Islands as a company with limited liability on November 28, 2011. Our business currently consists of the distribution and retail of specialty tea products. We have conducted research and planning of our blockchain technology and cryptocurrency mining business since 2021. For more information, please visit: www.bitbrother.com

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects", "estimate" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. These risks and uncertainties include, but not are limited to, the risk factors described by BTB in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

• Local government's policies and regulatory oversight of cryptocurrency mining operations and our other operations;
• BTB's cryptocurrency mining business is still under development, with many uncertainties in the future direction and integration of BTB's other business segments;
• Failure to manage the newly launched cryptocurrency mining business effectively;
• Failure to access a large quantity of power at reasonable costs could significantly increase BTB operating expenses and adversely affect demand for BTB's mining activities;
• Any significant or prolonged failure in the cryptocurrency mining facilities that BTB operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
• Security breaches or alleged security breaches of our cryptocurrency mining servers could disrupt BTB operations and have a material adverse effect on its business, financial condition and results of operation; and
• Fluctuation of the crypto price;
• Other risks and uncertainties indicated in BTB's SEC reports or documents filed or to be filed with the SEC by BTB.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Related Links: www.bitbrother.com

 

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SOURCE Bit Brother Limited

FAQ

What is the significance of Bit Brother's acquisition of 400 mining servers?

The acquisition enhances Bit Brother's cryptocurrency mining capacity, increasing total operational servers to 1,800.

What is the estimated BTC production for Bit Brother after the new servers are operational?

Bit Brother estimates a production of approximately 0.6065 BTC per day or 18.19 BTC per month.

What risks does Bit Brother face in its cryptocurrency mining business?

Bit Brother faces risks including regulatory scrutiny, operational management challenges, power supply issues, and market price fluctuations.

When were the new mining servers expected to be delivered?

The 400 mining servers are expected to be delivered within 21 days of the agreement.

What is Bit Brother's stock symbol?

Bit Brother's stock symbol is BTB, traded on NASDAQ.