SHANGHAI, Aug. 4, 2021 /PRNewswire/ -- The9 Limited
(Nasdaq: NCTY) ("The9"), an established Internet company, today
announced that its wholly-owned subsidiary NBTC Limited and
Kazakhstan enterprise KazDigital
Ltd (hereinafter referred to as "KazDigital") have signed a
non-binding term sheet (the "Term Sheet") regarding the
establishment of a joint venture company in Kazakhstan to build a cryptocurrency mining
site with a capacity of 100MW. It will be used to deploy The9's
mining machines and potentially other third-parties' mining
machines.
According to the Term Sheet, both parties will invest their own
assets to establish the joint venture. KazDigital will invest
assets related to construction and infrastructure of the mining
site into the joint venture, and The9 will invest cash or mining
machines in the joint venture. The assets invested by both parties
will be evaluated by a third-party impartial institution in order
to confirm their fair value and ensure that both parties invest
equivalent assets.
After establishment of the joint venture, construction of the
total capacity of the cryptomining site will be completed in four
stages: first stage of 25MW has been completed on August 1 this year, the remaining 75MW will be
gradually completed in the third and fourth quarters of this year
and the first quarter of 2022, with installation of 25MW per
quarter.
KazDigital will be responsible for future operation and
management of the joint venture. It will also be responsible for
submitting relevant reports to The9. The9 will first transport
1,000 mining machines to Kazakhstan for trial operation to ensure
streamline processes and operations in the future.
Both parties are bound by 6 months exclusivity period regarding
development of similar cooperation in Kazakhstan, however this does not include the
right of The9 to seek other mining sites in Kazakhstan for hosting and co-location of its
mining machines. Both parties will carry out due diligence process
within two months after signing of the Term Sheet.
"We believe that we should capture the current unique
opportunity of the rapidly changing cryptocurrency mining
environment and should accelerate the deployment of our mining
machines. In the near future, we will continue to actively seek for
low-cost electricity and sustainable energy mining facilities in
different regions of the world to accelerate the deployment of
large-scale cryptocurrency mining machines for ourselves and other
partners by both self-construction of mining facilities and hosting
cooperation with mining facilities companies," said Cai Zhifang,
Chief Executive Officer of NBTC Limited
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.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Such
statements are based upon management's current expectations and
current market and operating conditions and relate to events that
involve known or unknown risks, uncertainties and other factors,
all of which are difficult to predict and many of which are beyond
The9's control. The9 may also make written or oral forward-looking
statements in its periodic reports to the SEC, in its annual report
to shareholders, in press releases and other written materials and
in oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about The9's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: The9's goal and strategies; The9's expansion plans;
The9's future business development, financial condition and results
of operations; The9's expectations regarding demand for, and market
acceptance of, its products and services; The9's expectations
regarding keeping and strengthening its relationships with business
partners it collaborates with; general economic and business
conditions; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in The9's filings with the SEC. All information provided
in this press release and in the attachments is as of the date of
this press release, and The9 does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law.
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SOURCE The9 Limited