The9 Limited Signed an Investment Memorandum to Establish Another Cryptocurrency Mining Joint Venture for Building Another 200MW Capacity in Kazakhstan

Rhea-AI Summary

The9 Limited (NCTY) has entered a non-binding investment memorandum with Kazakhstan's LGHSTR Ltd. to establish a joint venture in Kazakhstan. NBTC, a wholly-owned subsidiary of The9, will hold a 51% stake while LGHSTR will hold 49%. The joint venture aims to develop cryptocurrency mining sites with a capacity of 200MW over the next two years, beginning with a planned completion of 20MW by September 2021. The company expects to restore significant hash power and expand its mining operations globally, leveraging low-cost electricity sources.

Positive

• Joint venture in Kazakhstan with LGHSTR, holding 51% stake.
• Plans to invest in 200MW cryptocurrency mining infrastructure.
• Possible restoration of 50% of original hash power by end of October 2021.

Negative

• None.

SHANGHAI, Aug. 20, 2021 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9"), an established Internet company, today announced that its wholly-owned subsidiary NBTC Limited ("NBTC") and a Kazakhstan company LGHSTR Ltd. ("LGHSTR") have signed a non-binding investment memorandum to establish a joint venture in Kazakhstan. According to the investment memorandum, NBTC and LGHSTR will own 51% and 49% of the joint venture respectively. NBTC will control the board of directors of the joint venture.

The joint venture plans to invest and build cryptocurrency mining sites with a total capacity of 200MW within two years. NBTC will have the priority to deploy cryptocurrency mining machines owned by NBTC or its partners. When the 200MW mining sites construction is fully completed, taking S19 Antminers as an example, the sites are expected to be able to deploy more than 50,000 S19 Antminers and accommodate about 5EH/s of hash power. The joint venture will also carry out operation and maintenance of cryptocurrency mining machines in Kazakhstan. The joint venture plans to complete the construction of 20MW in September 2021; a total of 100 MW is expected to complete by the end of 2021 cumulatively; and a total of 200MW is expected to be completed by the end of 2022 cumulatively.

"The9 is actively developing the globalization of its cryptocurrency mining business. The first batch of hash power has been restored in Kazakhstan in early August this year and has been operating stably. If the cooperation with our worldwide mining facilities partners progresses smoothly, we expect to restore approximately 50% of our original hash power by the end of October this year, and we plan to restore all our original hash power and add new hash power before the end of this year," said Cai Zhifang, CEO of NBTC Ltd.

The9 will continue to actively seek for low-cost electricity and sustainable energy mining facilities in different regions in the world, to accelerate the deployment of large-scale cryptocurrency mining machines for The9 and other partners by both investments in mining facilities and hosting cooperation with mining facilities companies.

About The9 Limited

The9 Limited (The9) is an Internet company based in China listed on Nasdaq in 2004. The9 aims to become a diversified high-tech Internet company.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond The9's control. The9 may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: The9's goal and strategies; The9's expansion plans; The9's future business development, financial condition and results of operations; The9's expectations regarding demand for, and market acceptance of, its products and services; The9's expectations regarding keeping and strengthening its relationships with business partners it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in The9's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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SOURCE The9 Limited

FAQ

What is the joint venture between The9 and LGHSTR in Kazakhstan?

The9 and LGHSTR have signed a non-binding investment memorandum to establish a joint venture focused on cryptocurrency mining sites in Kazakhstan.

What is the capacity planned for the cryptocurrency mining joint venture by The9?

The planned capacity for the cryptocurrency mining joint venture is 200MW over two years.

When is the first phase of construction for the joint venture expected to be completed?

The construction of the first phase, which is 20MW, is expected to be completed by September 2021.

How much hash power does The9 expect to restore by the end of October 2021?

The9 anticipates restoring approximately 50% of its original hash power by the end of October 2021.

What percentage of ownership does The9 have in the joint venture?

The9's subsidiary NBTC will own 51% of the joint venture.