Fintech service provider, FinTech (NASDAQ: FTFT), to build cryptocurrency mining farm in the US
Fintech signed a Cooperation Agreement with APC Service Ltd. to establish a joint venture in Ohio, to build a cryptocurrency mining farm with a first project phase of 50MW of processing power,
Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as "Future FinTech", "FTFT" or "the Company"), a leading blockchain-based e-commerce business and a fintech service provider, announced today that the Company signed a Cooperation Agreement (the "Agreement") with APC Service Ltd. ("APC") to establish a joint venture in Ohio, to build a cryptocurrency mining farm with a first project phase of 50MW of processing power, which, if successful, could be expanded to a total project size of 300MW. When the first phase of the 50 MW mining site is completed, it is projected that it will deploy approximately 12,000 S19 Antminers and accommodate about 1.3 EH/s of hash power. The Company will first establish a wholly-owned subsidiary, to be called FTFT Super-computing that is authorized to conduct business in Ohio to invest in, develop and operate the cryptocurrency mining farm. As per the Agreement, APC has the option right to purchase up to 30% of FTFT Super-computing within 365 days of the completion of first phase of the mining farm. The overall capacity of the cryptocurrency mining farm project is projected to be 300MW which will consist of a build-out of 50 MW of processing power each over six expansion phases.
The total investment for the FTFT Ohio cryptocurrency mining farm project is estimated to be $62 million, with each of the six stages of the project projected to be $10 million per expansion phase; however, $12 million is being allocated for the first phase of the project for the acquisition of the site, plant development and the upgrading of the power system. APC has identified the project site that has an existing facility for the first phase of the project, which is expected to be completed by June 2022.
More complete information of the Agreement is set forth in the Form 8-K and its exhibits filed with the Securities and Exchange Commission on December 17, 2021.
Mr. Shanchun Huang, Chief Executive Officer of Future FinTech, said, "We are actively planning and developing a global expansion strategy for our cryptocurrency mining business. Our strategic plan for this business is to develop cryptocurrency mining farms with relatively low start-up costs and economical sustainable energy in different regions of the world, and accelerate their deployment using our capabilities or through cooperation agreements with very strong partners. We believe that our cooperation agreement with APC to build a cryptocurrency farm in Ohio will be very positive for both parties."
Matt Liu, Chief Executive Officer of APC, said, "We are very pleased to have entered into a cooperation agreement with Future FinTech. APC is based in Hong Kong and we are engaged in environmental technology R&D, energy conservation and environmental protection engineering design and construction, and we also have deep experience in managing international engineering projects. We believe that our partnership with Future FinTech, as a leading blockchain technology company, will enable us to maintain our goal of the efficient use of energy for bitcoin mining. We believe that the two parties bring its own special expertise to the new enterprise which will result in a highly productive cryptocurrency farm."
About Future FinTech Group Inc. Future FinTech Group Inc. is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), and supply chain financing and services. The Company is also engaged in the development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http://www.ftft.com/. SOURCE Future FinTech Group Inc.