UPDATE: Sino-Global Expands Cryptocurrency Market Position with Acquisition of 2,783 Digital Currency Mining Servers
Sino-Global Shipping America, Ltd. (NASDAQ: SINO) has successfully acquired 2,783 digital currency mining servers from Hebei Yanghuai Technology Co., Ltd. for approximately RMB 30 million (USD 4.6 million). This acquisition increases their computing power to 50,440 t/s and positions Sino-Global to expand in the cryptocurrency market. The servers come with a one-year warranty, and Yanghuai will manage them during this period. CEO Lei Cao expressed confidence in leveraging their logistics experience to enhance value for shareholders.
- Acquisition of 2,783 digital currency mining servers expands computing power to 50,440 t/s.
- Transaction value of approximately USD 4.6 million signifies investment in the cryptocurrency market.
- CEO indicates potential for further growth through additional mergers and acquisitions.
- The volatility of cryptocurrency values may impact future profitability.
- Dependence on Yanghuai for server management could pose operational risks after the one-year warranty.
ROSLYN, N.Y., March 11, 2021 /PRNewswire/ -- Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global," the "Company" or "We") today announced the expansion of its cryptocurrency market position with the close of its acquisition of 2,783 digital currency mining servers from Hebei Yanghuai Technology Co., Ltd. ("Yanghuai"), reaching a total of 50,440 t/s in computing power. The deal is valued at approximately RMB 30 million (approximately USD 4.6 million) and was closed following a successful inspection of the digital currency operation servers for uniqueness, health and ownership.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented, "The successful closing of this acquisition puts Sino-Global ahead of schedule as we diversify our core business into the fast growing cryptocurrency market. Acquiring nearly 3,000 digital currency mining servers gives us a substantial platform, one we intend to grow both organically and through additional M&A opportunities if they meet our valuation, performance and location criteria. Having been in business since 2001, we believe we can leverage our extensive trading and logistics experience to create even greater value for the company and shareholders."
All devices have unique QR codes enabling qualified uniqueness acceptance. The agreement stipulates a one-year warranty period covering the operational health and performance of the digital currency operation servers. Yanghuai will continue to manage and operate the digital currency mining servers at no further charge during this one year, after which time Sino-Global may contract Yanghuai to provide such services for a fee.
About Sino-Global Shipping America, Ltd. (NASDAQ: SINO)
Founded in the United States in 2001, Sino-Global Shipping America, Ltd. has been diversifying into the fast growing cryptocurrency market, while continuing to support and grow its core shipping, chartering, logistics and related services business. Headquartered in New York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong Kong. Additional information about Sino-Global can be found on the Company's corporate website at www.sino-global.net.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include SINO's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. In addition, there is uncertainty about the spread of the COVID-19 virus and the impact it will have on SINO's operations, the demand for SINO's products and services, global supply chains and economic activity in general. Moreover, the value of cryptocurrencies may fluctuate significantly over time. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Additional information concerning these and other factors that may impact our expectations and projections will be found in our periodic filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. SINO's SEC filings are available publicly on the SEC's website at www.sec.gov. SINO disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
View original content:http://www.prnewswire.com/news-releases/update-sino-global-expands-cryptocurrency-market-position-with-acquisition-of-2-783-digital-currency-mining-servers-301245227.html
SOURCE Sino-Global Shipping America, Ltd.
FAQ
What was the acquisition value for SINO's digital currency mining servers?
How many mining servers did SINO acquire?
What is the expected impact of this acquisition on SINO?
Who managed the servers after the acquisition?
What is the total computing power of SINO's mining servers after the acquisition?
