ATLANTA, Oct. 20, 2022 (GLOBE NEWSWIRE) — BitMine Immersion Technologies, Inc. (“Bitmine”) (OTC: BMNR) introduced plenty of developments in its business.
Shift in Primary Business Focus to Self-Mining
Jonathan Bates, BitMine CEO was quoted as saying- “As time has passed and we have received our datacenter equipment and supporting electrical infrastructure equipment, the price of Bitcoin Mining ASIC Computers has steadily dropped. These ASIC miners are selling at a fraction of their price from a year ago. Our original plan was to host others’ ASIC miners, and self-mine with a small percentage of our capacity. Given the sharp drop in ASIC prices, we feel that focusing on self-mining is a better use of our datacenter equipment and a better use of firm capital at this time. While we still plan to host for others, we intend to shift a greater percentage of our business mix in favor of self-mining relative to hosting, as long as the distress in ASIC miner prices continues. We will also pursue joint ventures and partnerships where our infrastructure equipment can be paired with ASIC miners valued at current prices.”
ROC Digital Joint Venture
On October 13, 2022, Bitmine entered into a three way partnership with Roc Digital Mining Manager LLC (“ROC Manager”) with regard to a internet hosting location in Pecos, Texas which has a capability of 5-6 megawatts over a 5 12 months interval. Under the three way partnership, the Company acquired a 30% curiosity in ROC Manager, which is the supervisor of ROC Digital Mining I LLC (the “ROC Operating”). Bitmine made a capital contribution to ROC Operating of $1,056,000, consisting of 1 immersion container unit valued at $300,000, six GE Protec 1500 KVA transformers valued at $750,000, and $6,000 money. Bitmine additionally bought ROC Operating 4 immersion container items for $1,200,000. The buy value for the containers is payable pursuant to a promissory word that bears curiosity at 5% each year and is payable by way of 42 month-to-month funds of $31,203.64 till it’s paid in full. In addition, the word is secured by a lien towards the 4 containers. The three way partnership intends to buy ASIC miners to mine Bitcoin for its personal account, somewhat than internet hosting miners for third events. ROC expects to be operational by the tip of November 2022. In addition, Bitmine is entitled to find one internet hosting container on the website which it might use for mining for its personal account or internet hosting for third events, and expects to pay a professional rata portion of the lease and different working prices of the positioning.
$1,000,000 Line of Credit
In order to make sure that Bitmine has the flexibility to execute its enlargement initiatives, Bitmine has entered into a line of credit score with Innovative Digital Investors Emerging Technology, L.P. (“IDI”), a restricted partnership managed by Jonathan Bates, the Company’s Chairman, and Raymond Mow, the Company’s Chief Financial Officer and a Director. The line of credit score offers for loans of as much as $1,000,000 on the request of Bitmine to finance the acquisition of apparatus mandatory for the operation of Bitmine’s business, and associated working capital. Loans underneath the road of credit score accrue curiosity at twelve p.c (12%) each year, compounded on a 30/360 month-to-month foundation till the loans have been repaid in full. Bitmine has the appropriate to submit draw requests underneath the road of credit score till April 15, 2023. Each draw request is topic to the approval of IDI in its sole discretion. The quantity drawn, plus all accrued curiosity therein, is repayable in full on December 1, 2023.
Termination of Hosting Agreement
On October 19, 2022, Bitmine entered into a Repurchase and Hosting Agreement (the “TCC Agreement”) with The Crypto Company (“TCC”), underneath which Bitmine agreed to repurchase sure ASIC miners which it had beforehand bought to TCC, buy some extra ASIC miners owned by TCC, and terminate a internet hosting settlement between the Company and TCC. In February 2022, Bitmine bought TCC 70 Antminer T-17’s for $175,000 and 25 Whatsminers for $162,500, for a complete buy value of $337,500. TCC paid 50% of the acquisition value in money, and the steadiness by execution of a word payable to the Company for $168,750. Simultaneous with the sale, Bitmine and TCC entered into a internet hosting settlement underneath which the Company agreed to host the miners, together with different miners owned by TCC. Under the TCC Agreement, Bitmine will (a) settle for the return of the 70 Antminer TY-17s for a credit score of $175,000 as a guaranty declare, (b) buy the 25 Whatsminers for $62,500, and (c) buy 72 Antminer T-19s from TCC for $144,000. The credit score and buy costs for the gear will probably be utilized to cancel the word, with the steadiness of $212,500 payable by Bitmine in money. Upon consummation of the TCC Agreement, the internet hosting settlement will probably be terminated. The efficient date of the TCC Agreement is not going to happen till Bitmine pays the web value as a consequence of TCC. The TCC Agreement will probably be null and void if the efficient date doesn’t happen inside seven business days of the date of the TCC Agreement. Bitmine plans to make use of the 25 Whatsminers and 72 Antminer T-19s in its self-mining operations, as a part of its transition from a internet hosting firm to a self-mining firm. Bitmine believes it may possibly restore among the 70 Antminer T-17s, which it should use for self-mining.
Trinidad Operations Update
In 2021, Bitmine entered into an settlement with a telecommunications firm in Trinidad and Tobago Limited to co-locate as much as 125 800 kw containers for internet hosting miners over 93 potential places. Under the settlement, Bitmine has the choice, however not the duty, to co-locate containers at its personal tempo, and would pay a hard and fast quantity per container, plus the precise electrical energy prices incurred by its containers. The electrical energy charge we anticipated to pay for our internet hosting containers was $0.035 cents per kwh based mostly on the speed presently paid by the telecommunications firm. In October 2022, we accomplished the set up of our preliminary internet hosting containers in Trinidad. However, previous to commencing operations, the telecommunications firm suggested us that the electrical firm wouldn’t honor its current settlement with respect to electrical energy provided to our internet hosting containers, and as an alternative indicated that the speed can be roughly $0.09 per kwh. The telecommunications firm has protested the choice. At this time, we’re unable to foretell how this dispute will probably be resolved, what type any decision might take or how lengthy any decision might take. Accordingly, we’re delaying the set up of extra containers in Trinidad till this dispute is resolved. Until the dispute is resolved, we intend to focus our efforts on buying or growing internet hosting places within the United States and Canada, both immediately or in joint ventures with different trade contributors. Many of those alternatives have offered themselves in current weeks and months, they usually merely weren’t obtainable 6-12 months in the past.
BitMine Immersion Technologies, Inc. Forward-Looking Statements:
This press launch accommodates statements that represent “forward-looking statements.” Forward-looking statements are topic to quite a few circumstances, lots of that are past BitMine Immersion Technologies’ management, together with these set forth within the Risk Factors part of BitMine Immersion Technologies’ Form 10-Ok filed with the Securities and Exchange Commission (the “SEC”) on December 9, 2021, and its Form 10-Q filed on April 18, 2022, and another SEC filings, as amended or up to date every now and then. Copies of BitMine Immersion Technologies’ filings with the SEC can be found on the SEC’s web site at www.sec.gov. BitMine Immersion Technologies undertakes no obligation to replace these statements for revisions or modifications after the date of this launch, besides as required by regulation.
BitMine Immersion Technologies Contact:
Jonathan Bates Chairman and CEO
[email protected]
Jonathan Bates
Chairman & CEO
BitMine Immersion Technologies, Inc.
OTC: BMNR
2030 Powers Ferry Road SE
Suite 212
Atlanta, GA 30339
