Bit Brother New York Signs Lease Agreement with Access to 62.5MW of Green Power: Substantial First Step in Blockchain Transformation

Rhea-AI Summary

Bit Brother Limited (NASDAQ: BTB) has signed a lease with Petawatt Properties LLC for a 22-acre plant in Carthage, New York, aimed at developing its cryptocurrency and blockchain operations in North America. The lease, costing $1 million annually for ten years, includes a clause for a green power supply of 62.5 MW. If fully operational, the plant can host 17,800 mining rigs with a hash rate of 110TH. CEO Ralph Jones highlighted this deal as a key step in the company’s globalization strategy and commitment to a low-carbon economy.

Positive

• Secured a 10-year lease for a 22-acre plant to develop blockchain operations.
• Access to 62.5 MW of green power is a significant advantage for operations.
• Potential to host 17,800 mining rigs, enhancing cryptocurrency mining capacity.

Negative

• Dependence on securing a reliable power supply to avoid operational delays.
• Forward-looking statements highlight uncertainties in business execution and market conditions.

CHANGSHA, China, Aug. 10, 2022 /PRNewswire/ -- Bit Brother Limited (the "Company," "we" or "Bit Brother") (NASDAQ: BTB), through its subsidiary in New York, Bit Brother New York Inc., entered into a lease agreement with Petawatt Properties LLC, a Wyoming limited liability company ("Petawatt"), which marks the initial step for the parties to jointly develop the cryptocurrency and blockchain business in North America.

On August 2, 2022, Bit Brother New York and Petawatt entered into a lease agreement for a 22-acre plant in Carthage New York. Bit Brother New York agreed to pay Petawatt an annual rent of $1 million for a term of ten years which could be deducted from the purchase price if Bit Brother acquires majority equity interest of Petawatt. Petawatt agreed to secure power supply agreements for 62.5MW of green power by September 1, 2022. Otherwise, Bit Brother New York may terminate the lease and Petawatt shall return the $100,000 deposit it received If fully operational with 62.5 MWs of power supply, the plant is expected to host 17,800 mining rigs with the hash rate of 110TH assuming average hash power of 3.5kw/h per miner.

Mr. Ralph Jones, the CEO of Bit Brother New York, commented, "This partnership with Petawatt is a significant step for Bit Brother's advancement in the blockchain industry. As a vertically integrated energy, facilities and service provider with access to significant green power resources in North America, Petawatt's choice to partner with Bit Brother also proves its confidence in Bit Brother. Securing the property in North America is a key milestone in our globalization strategy. We are committed to moving forward with our plan to launch blockchain operations in the US and create value for our investors in the cryptocurrency and blockchain field gradually." In addition, Mr. Jones emphasized that Bit Brother's future global blockchain presence is expected to be as green as possible, thus contributing to the development of a low-carbon economy.

About Petawatt Properties LLC

Petawatt, incorporated in the State of Wyoming and headquartered at Watertown, New York, is a vertically integrated energy, facilities and service provider to high demand energy consumers, such as blockchain crypto-miners, hydroponic operators and data centers.

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: http://www.bitbrother.com/

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance.  The Company cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the Company's:

• ability to have the plant fully operational as a crypto hosting center;
• ability to secure the 62.5 MW green power supply at terms acceptable to the Company;
• expected hash rate for the mining rigs to be hosted at the plant;
• ability to execute its business plan; and
• expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include, but not are limited to, the risk factors described by Bit Brother in its filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website (http://www.sec.gov). 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:

• Bit Brother's blockchain technology and cryptocurrency mining business are still under development, with many uncertainties in the execution of its business plan;
• failure to access a large quantity of power at reasonable costs could significantly increase the Company's operating expenses;
• federal and state government's policies and regulatory oversight of crypto currency mining operation;
• other risks and uncertainties indicated in Bit Brother's SEC reports or documents filed or to be filed with the SEC by Bit Brother.

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.

 

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SOURCE Bit Brother Limited

FAQ

What is the significance of Bit Brother's lease agreement with Petawatt Properties?

The lease agreement marks an important step for Bit Brother in developing its cryptocurrency and blockchain business in North America.

How much will Bit Brother pay for the lease with Petawatt Properties?

Bit Brother will pay $1 million annually for the lease over ten years.

What are the operational capabilities of the new plant in Carthage, New York?

The plant is expected to host 17,800 mining rigs with a hash rate of 110TH if fully operational.

What is the deadline for securing the green power supply for Bit Brother's operations?

Petawatt must secure the power supply agreements by September 1, 2022.

What are the risks mentioned in Bit Brother's press release?

Risks include uncertainties in business execution and reliance on adequate power supply.