Future Fintech Announces Framework Agreement to Purchase Antminer Bitcoin Mining Machines

Rhea-AI Summary

Future FinTech Group Inc. (FTFT) signed a framework agreement with Nanjing Shunru to acquire approximately 20,000 Antminer bitcoin mining machines, targeting a hash rate of 200 Petahash per second. The mining capacity accounts for about 0.12% of Bitcoin's total hash rate, enhancing transaction security. The agreement includes a non-binding framework, with key sections on confidentiality and dispute resolution. The total purchase price is RMB 50 million ($7.6 million), with RMB 10 million ($1.5 million) in cash and the rest in FTFT stock. CEO Shanchun Huang emphasized the opportunity to enter the bitcoin mining sector.

Positive

• Acquisition of 20,000 Antminer machines can significantly enhance FTFT's mining capacity.
• Secures a guaranteed hash rate of 200 PH/s for at least 180 days, bolstering Bitcoin transaction security.
• Strategic move into bitcoin mining aligns with the recent surge in Bitcoin prices, potentially increasing profitability.

Negative

• The framework agreement is non-binding except for certain sections, which may introduce uncertainty.
• Part of the payment involves issuing stock, potentially diluting existing shareholders' equity.

NEW YORK, March 29, 2021 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as Future FinTech", "FTFT" or "the Company"), a leading blockchain-based e-commerce business and a fintech service provider, announced today that on March 26, 2021, the Company signed a framework agreement (the "Frame Agreement") with Nanjing Shunru Electronic Technology Co., Ltd. ("Nanjing Shunru") to purchase approximately 20,000 Antminer bitcoin mining machines, which will provide a combined 200 Petahash per second (PH/s) hash rate, which accounts for about 0.12% of Bitcoin's total hash rate capacity. Mining hash rate is an important security metric in terms of verifying bitcoin transactions; high hashing or computing processing power means greater system security for Bitcoin transactions. The Frame Agreement is non-binding except for the 'Confidentiality and Exclusivity' and 'Applicable Law and Dispute Resolution' sections of the agreement.

According to the Frame Agreement, Nanjing Shunru will provide no less than 20,000 Antminer mining machines to Future FinTech and guarantees a total Bitcoin hash rate of at least 200 PH/s for at least 180 days per year. Should the hash rate be less than 200 PH/s, Nanjing Shunru must supplement the corresponding hash rate with additional Antminer mining machines within a five-day period with no additional cost to FTFT. The mining machines will be delivered pending further due diligence on the part of the Company and a definitive agreement by the parties. The purchase price of such Antminer miner machines is RMB 50 million (approximately $7.6 million), of which RMB 10 million (approximately $1.5 million) will be paid in cash, and the remaining RMB 40 million (approximately $6.1 million) will be paid in FTFT common stock.

Mr. Shanchun Huang, Chief Executive Officer of Future FinTech, commented, "The recent sharp increase in the price of Bitcoin has provided us with the opportunity and economic incentive to develop an encrypted digital currency mining business. The signing of the mining machine acquisition frame agreement is the first step for us to move into the bitcoin mining field. We will continue to optimize the Company's comprehensive platform in the field of cryptocurrency mining and blockchain technology services to maximize returns to our shareholders."

About Future FinTech Group Inc.

Future FinTech Group Inc. ("Future FinTech", "FTFT" or the "Company") is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects. The Company is also engaged in the development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http:/www.ftftex.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

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SOURCE Future FinTech Group Inc.

FAQ

What is the framework agreement signed by FTFT on March 26, 2021?

FTFT signed a framework agreement to purchase approximately 20,000 Antminer bitcoin mining machines.

How much will FTFT pay for the Antminer mining machines?

The total price is RMB 50 million (approximately $7.6 million), with part paid in cash and the rest in stock.

What hash rate will FTFT achieve with the new mining machines?

The agreement guarantees a hash rate of 200 Petahash per second.

What is the significance of the hash rate for FTFT?

The hash rate improves security for Bitcoin transactions and positions FTFT in the growing cryptocurrency mining sector.

What are the potential risks associated with FTFT's new agreement?

The non-binding nature of the agreement and stock issuance could impact shareholder value.