The9 Signed Legally Binding Memorandums of Understanding on the Additional Purchase of Bitcoin Mining Machines

Rhea-AI Summary

The9 Limited (Nasdaq: NCTY) has signed six binding Memorandums of Understanding (MOUs) to acquire 10,489 Bitcoin mining machines, boosting its hash rate to approximately 251PH/S. This purchase will involve issuing around 7,178,160 Class A ordinary shares, based on a share price of $23.35. Additionally, The9 finalized agreements for a past batch of 26,007 machines at a share price of $11.18, issuing 26,838,360 shares. Following these acquisitions, The9's total hash rate will reach approximately 800PH/S, in line with its strategy to enhance its cryptocurrency mining capabilities.

Positive

• Acquisition of 10,489 Bitcoin mining machines, increasing hash rate to 251PH/S.
• Following previous agreements, total hash rate expected to reach 800PH/S.
• Strategic cooperation with Shenzhen MicroBT for the purchase of additional mining machines.

Negative

• None.

SHANGHAI, Feb. 8, 2021 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9"), an established Internet company, today announced that it signed six legally binding Memorandums of Understanding (collectively the "MOUs") with six unrelated Bitcoin mining machine owners to purchase Bitcoin mining machines by the issuance of Class A ordinary shares. This batch of Bitcoin mining machines includes different brands such as WhatsMiner, AntMiner and AvalonMiner, with a total number of 10,489 units and a total hash rate of approximately 251PH/S. These Bitcoin mining machines have already been deployed in Qinghai, Xinjiang and Inner Mongolia in China. According to the MOUs, The9 will issue approximately 7,178,160 Class A ordinary shares (equivalent to 239,272 ADSs) to the sellers based on The9 share price of US$23.35 prior to the MOUs, with a lock up period of 6 months. The9 will designate an independent valuation firm to conduct examination and assessment of the Bitcoin mining machine fair market value, and will make adjustment to the number of Class A ordinary shares to be issued if needed. The9 expects to complete the signing of the definitive agreements within one month after the signing of the MOUs.

The9 also announced that it completed the signing of the definitive agreements for the last batch of 26,007 Bitcoin mining machines with reference to the fair market value on the valuation report issued by an independent valuation firm and The9 share price of US$11.18 prior to the respective Memorandums of Understanding signing date. The9 will issue a total number of 26,838,360 Class A ordinary shares (equivalent to 894,612 ADSs) to the sellers, with a lock up period of 6 months.

After the completion of these two purchases, The9 is expected to own 36,496 Bitcoin mining machines, and the total hash rate will be upgraded to approximately 800PH/S.

In Addition, in early February 2021, NBTC Limited, a wholly owned subsidiary of The9, had signed a strategic cooperation framework purchase agreement with Shenzhen MicroBT Electronics Technology Co., Ltd., the manufacturer of WhatsMiner bitcoin mining machines for the purchase of 5,000 WhatsMiner bitcoin mining machines within one year. This will also be expected to increase the hash rate owned by The9 upon the continuous execution of the framework agreement. NBTC Limited will continue to purchase different types of cryptocurrencies mining machines with the plan to establish cryptocurrencies mining machine facilities worldwide.

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 purchase of Bitcoin mining machines?

The9's purchase will increase its hash rate significantly, from 251PH/S to approximately 800PH/S, enhancing its competitive position in cryptocurrency mining.

How many shares will The9 issue for the Bitcoin mining machine purchases?

The9 will issue approximately 7,178,160 Class A ordinary shares for the latest purchase and 26,838,360 shares for the previous batch.

What is The9's strategy regarding cryptocurrency mining machines?

The9 aims to establish cryptocurrency mining facilities worldwide by securing additional Bitcoin mining machines through strategic partnerships.

What brands of Bitcoin mining machines is The9 acquiring?

The9 is acquiring various brands, including WhatsMiner, AntMiner, and AvalonMiner, as part of its recent agreements.

When does the lock-up period for the issued shares begin?

There is a lock-up period of six months for the Class A ordinary shares issued to the sellers.