TAOP Announces MoU to Purchase Ethereum Mining Machines with Total Hash Rate of 500GH/s

Rhea-AI Summary

Taoping Inc. (NASDAQ: TAOP) announced the signing of a non-binding Memorandum of Understanding (MoU) with Dennver Group Holdings Limited to purchase Ethereum mining machines totaling a hash rate of 500 GH/s. The purchase price will be determined post due diligence, paid through a mix of cash and restricted ordinary shares of TAOP. The share price will be based on the volume-weighted average closing price over the past five trading days prior to the MoU execution. TAOP aims to enhance its blockchain technology operations and increase its market value for customers and shareholders.

Positive

• Signing of a non-binding MoU for Ethereum mining machines with a total hash rate of 500 GH/s.
• Opportunity to enhance operational hash rate and gain market opportunities in blockchain technology.

Negative

• The purchase price and fair market value of the mining machines are yet to be determined, creating uncertainty.
• Funding the purchase through restricted shares may lead to potential shareholder dilution.

SHENZHEN, Aug. 11, 2021 (GLOBE NEWSWIRE) -- Taoping Inc. (NASDAQ: TAOP, the “Company” or “TAOP”), a provider of blockchain technology and smart cloud services, today announces that it has signed a non-binding Memorandum of Understanding ("MoU") with Dennver Group Holdings Limited ("Dennver"), a British Virgin Islands company, to purchase Ethereum mining machines with a total hash rate of 500 GH/s.

Pursuant to the MoU, the purchase price of the Ethereum mining machines and related rights and interests, to be determined by the two parties after the completion of due diligence, will be paid in the form of a combination of cash and restricted ordinary shares of TAOP. The price per share is set at the volume weighted average closing price of TAOP ordinary shares over the 5 trading days prior to the execution of the MoU. TAOP will designate a third-party valuation firm to conduct examination and assessment of the fair market value of the Ethereum mining machines.

“TAOP is committed to keep increasing operational hash rate and seize the significant opportunities in blockchain technology,” said Mr. Jianghuai Lin, Chairman and CEO of TAOP, “We believe this transaction would bring value for our customers and shareholders in the near future.”

About Taoping Inc.

Taoping Inc. (TAOP) is an integrated group of technology and financial companies with business in Mainland China, Hong Kong, and other overseas countries. Relying on its unique strengths in cloud technology and chip supply chain, TAOP provides solutions and cloud services to industries such as film and television production, education, new media, artificial intelligence and asset management. The Company is dedicated to the research and application of blockchain technology as well as investment and management of financial assets at home and abroad. To learn more, please visit http://www.taop.com/.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Taoping Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as "believes", "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their 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.

For further information, please contact:

Taoping Inc.
Chang Qiu
Email: chang_qiu@taoping.cn
http://www.taop.com/
or

Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: taop@dgipl.com

FAQ

What is the purpose of the MoU signed by Taoping Inc. on August 11, 2021?

The MoU is for purchasing Ethereum mining machines with a total hash rate of 500 GH/s to enhance Taoping's blockchain operations.

How will the purchase price for the Ethereum mining machines be determined?

The purchase price will be established after due diligence and will involve a combination of cash and restricted ordinary shares of Taoping.

What are the implications of Taoping's agreement with Dennver Group Holdings Limited?

The agreement indicates Taoping's commitment to increasing its operational hash rate and leveraging blockchain technology for growth.

What potential risks are associated with Taoping's transaction for Ethereum mining machines?

Uncertainty in the purchase price and potential dilution of shareholders due to the issuance of restricted shares are notable risks.