Bit Brother Reached Potential Collaboration with Blockworx1 for a Sell Price of $1,200,000

Rhea-AI Summary

Bit Brother Limited (NASDAQ: BTB) announced its subsidiary, Bit Brother New York Inc, signed a Letter of Intent (LOI) with Blockworx1 LLC for the potential acquisition of assets and services valued at $1,200,000. This deal includes a 2-acre industrial tract in Abilene, TX, featuring 5 MW of existing electrical load capacity, expandable to 10 MW. Blockworx1 will provide development services for cryptocurrency mining, including site design and project approvals. The company has been exploring blockchain technology and cryptocurrency since 2021, but investors should be aware of the inherent risks and uncertainties associated with its mining business.

Positive

• Potential acquisition of assets valued at $1,200,000.
• Deal includes a property with existing electrical capacity of 5 MW, expandable to 10 MW.
• Involvement in cryptocurrency mining aligns with market trends.

Negative

• Cryptocurrency mining business is still under development and faces uncertainties.
• Dependence on local government policies and regulations that may impact operations.
• Risks of power access at reasonable costs could increase operating expenses.

CHANGSHA, China, Jan. 25, 2023 /PRNewswire/ -- Bit Brother Limited (the "Company," "we", "BTB" or "Bit Brother") (NASDAQ: BTB), through its subsidiary Bit Brother New York Inc ("BTB NY"), signed an LOI with Blockworx1 LLC ("Blockworx1") for the potential sale of assets and services for total purchase price of $1,200,000.

Blockworx1 is offering to sell 2-acre tract of land zoned for industrial use located at 5418 Lockheed Way, Abilene, TX 79603 ("property") that includes 5 MW of existing electrical load capacity with a potential to be scaled up to 10 MW of total electrical load capacity. Blockworx1 will also Development services to complete the build out of the aforementioned property for the purpose of cryptocurrency mining, including site design, selection and oversight of contractors, coordination in obtaining project approval and final inspection sign-off, negotiation and procurement of power purchase agreement(s) for 5 MW of electrical load, advisory and support for cryptocurrency mining hardware, and post-electrification site management to operationalize 5 MW of mining capacity.

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" 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.

www.bitbrother.com

 

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SOURCE Bit Brother Limited

FAQ

What assets is Bit Brother acquiring from Blockworx1?

Bit Brother is acquiring a 2-acre industrial tract in Abilene, TX, with a purchase price of $1,200,000.

What is the electrical capacity of the property Bit Brother is interested in?

The property includes 5 MW of existing electrical load capacity, which can be expanded to 10 MW.

What services will Blockworx1 provide for Bit Brother?

Blockworx1 will provide development services including site design, project approval coordination, and power procurement for cryptocurrency mining.

What are the risks associated with Bit Brother's cryptocurrency mining business?

Risks include regulatory challenges, high operational costs, and potential failures in mining facilities.