The9 Signed Legally Binding Memorandum of Understanding on the Acquisition of a Cryptocurrency Cloud Mining Blockchain SaaS Company

Rhea-AI Summary

The9 Limited (Nasdaq: NCTY) has signed a memorandum of understanding to acquire 70% equity in Hangzhou SuanLi Technology Co., Ltd. (Interhash) for approximately US$7 million. The payment will be made via Class A ordinary shares based on a prior closing market price of US$82.89. Established in 2019, Interhash offers cryptocurrency mining management services and aims to be a leading provider in the blockchain SaaS sector. This acquisition aligns with The9's strategy to enhance its cryptocurrency mining operations and provide decentralized services to users worldwide.

Positive

• Acquisition of 70% equity in Interhash expands The9's cryptocurrency mining business.
• Interhash has a cumulative Bitcoin hash rate of approximately 590PH/S, indicating strong operational capacity.
• The acquisition allows for the expansion of decentralized cryptocurrency cloud mining services.

Negative

• The total acquisition cost of US$7 million could impact The9's financials depending on market conditions.
• Issuing Class A ordinary shares for payment may lead to shareholder dilution.

SHANGHAI, Feb. 22, 2021 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9"), an established Internet company, today announced that it signed a legally binding memorandum of understanding (the "MOU") on the Acquisition of 70% equity of Hangzhou SuanLi Technology Co., Ltd. (hereinafter referred to as "Interhash"), a cryptocurrency cloud mining blockchain Software-as-a-Service ("SaaS") company. The acquisition consideration is approximately US$7 million, subject to due diligence and valuation to be conducted by an independent valuation firm. The9 will pay the acquisition consideration by issuance of Class A ordinary shares based on the closing market price of US$82.89 prior to the signing of the MOU.

Established in June 2019, Interhash is a one-stop comprehensive platform that provides cryptocurrency mining-related management services to worldwide users. Users can place an order with one click to use the services, which save the users from involving in the complicated process of cryptocurrency mining including purchasing, installing and hosting cryptocurrency mining mahcines. The team of Interhash are all veterans who have been involved in the blockchain industry in the early days, especially in the field of cryptocurrency mining, with long time industry experience and resources. Interhash has managed AvalonMiners, AntMiners, WhatsMiners, Ipollo miners and Ebit miners for users. The cumulative Bitcoin hash rate under Interhash's management is approximately 590PH/S. Utilizing the team's long time experience and resources in the cryptocurrency mining industrial chain, Interhash's goal is to become a leading cryptocurrency cloud mining blockchain SaaS company.

The9's acquisition of Interhash is a strategic action to expand its cryptocurrency mining business after the continuous purchase of Bitcoin and other cryptocurrency mining machines for accumulating cryptocurrency assets. The9's goal is to further provide decentralized cryptocurrency cloud mining services to users on top of its current centralized cryptocurrency mining business. Such one-stop mining provides an easy entry point to worldwide users for cryptocurrency cloud mining, and let the worldwide users share the benefits from cryptocurrencies.

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.

Website: https://www.the9.com/en

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SOURCE The9 Limited

FAQ

What is the significance of The9's acquisition of Interhash?

The acquisition aims to enhance The9's cryptocurrency mining operations and expand decentralized services.

How much is The9 investing in the acquisition of Interhash?

The9 is acquiring 70% equity in Interhash for approximately US$7 million.

What services does Interhash provide?

Interhash offers cryptocurrency mining-related management services as a cloud mining blockchain SaaS company.

When was Interhash established?

Interhash was established in June 2019.

How does the acquisition affect The9's stock performance?

The acquisition has potential implications for The9's stock performance due to changes in shareholder structure and market perception of its cryptocurrency business.