Code Chain New Continent Limited Announces Purchasing of 10,000 Bitcoin Mining Machines
Code Chain New Continent Limited (NASDAQ: CCNC) announced a purchase agreement for 10,000 Innosilicon T2T Bitcoin mining machines for around RMB 40 million (approximately USD 6.2 million). The deal is contingent upon final valuation and due diligence. The purchased machines will generate daily profits, deposited into the Company's account, with potential share bonuses for the Seller if daily profits reach RMB 200,000 within a year. This move marks a significant expansion into cryptocurrency mining, leveraging the recent surge in Bitcoin prices.
- Expansion into cryptocurrency mining aligns with market trends.
- Potential to generate consistent daily profits from mining operations.
- Purchase agreement reflects management's swift execution and strategic vision.
- Transaction completion is subject to final valuation and due diligence, introducing uncertainties.
- Reliance on achieving specified profit levels to unlock performance bonuses increases operational risk.
NEW YORK, Feb. 23, 2021 /PRNewswire/ -- Code Chain New Continent Limited (the "Company" or "Code Chain") (NASDAQ: CCNC), a leading eco-technology company, today announced that the Company has entered into a purchase agreement (the "Agreement") with Chengdu RiZhanYunJisuan Co., Ltd. (the "Seller") pursuant to which the Company will purchase 10,000 Innosilicon T2T Bitcoin mining machines for approximately RMB 40 million (approximately USD 6.2 million). The closing of the transaction is subject to the completion of final valuation and due diligence by the Company.
Under the term of the Agreement, a total consideration of RMB 40 million to acquire 10,000 Innosilicon T2T mining machines will be paid on the closing date. Upon the completion, the purchased machines will be stored and managed by the Seller. The daily net profit earned by miners will be deposited into the Company's digital account. Addition performance bonus in the form of Company's shares shall be granted to the Seller based on achievement of aggregate average daily net profit of RMB 200,000 during the one year period following the closing date ("Valuation Period").
David (Weidong) Feng, Co-CEO of the Company, commented, "It is with great excitement to announce the purchase agreement which is a step forward in expanding to cryptocurrency mining business. This quick action illustrates the efficiency of the management team's execution. The recent tremendous increase of Bitcoin prices presents us with a unique opportunity to establish mining operation to optimize the structure of our offerings in the cryptocurrency industry value chain, as well as to bring the best value to our customers. We believe the partnership with Chengdu RiZhanYunJisuan is a true win-win approach require combined effort and their commitment in achieving Bitcoin mining daily net profit of RMB 200,000. We look forward to closing this transaction soon upon completion of our due diligence process."
About Code Chain New Continent Limited
Founded in 2009, Code Chain New Continent Limited engages in the research, development, and sale of solid waste recycling systems for the mining and industrial sectors, the wholesale and sale of fuel materials, harbor cargo handling services and production and sales of coating materials in the PRC. It provides end-users in these markets with a clean alternative to traditional waste disposal by significantly reducing solid waste discharge into the environment and enabling such users to extract value from valuable metals and other industrial waste materials. Upon completion of Sichuan Wuge Network Games Co., Ltd. ("Wuge"), the Company has also diversified its business. Wuge was established in 2019 and is still in this early developing stage. Wuge produced electronic tokens that combine the five-W elements (when, where, who, why, what), geographic location via the Beidou satellite system and identity information using Code Chain technology. The electronic tokens are unique, tradable, and inheritable digital assets and cannot be tampered. The electronic tokens are based on and stored in the Code Chain system and can be used to monitor and document all kinds of consumer behaviors that involve code-scanning.
Safe Harbor Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "could," "would," "plan," "anticipate," "believe," "estimate," "predict," "potential," "expects," "intends", "future" and "guidance" or similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to change at any time. These forward-looking statements are based upon management's current expectations and are subject to a number of risks, uncertainties and contingencies, many of which are beyond the Company's control that may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company's actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on 10-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable law.
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SOURCE Code Chain New Continent Limited
FAQ
What is the significance of Code Chain's purchase of 10,000 Bitcoin mining machines?
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When is the purchase agreement for the Bitcoin mining machines expected to close?
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What performance criteria must the Seller meet for additional bonuses?
