BlocksInform
Publicly traded Chinese gaming company The9 (NCTY) said Friday it agreed to buy 2,000 units of AvalonMiners bitcoin mining machines for about $6.72 million in stock.
In an announcement, The9 said it signed a memorandum of understanding to buy the machines with a total hashrate of about 100PH/S.A total of 8.12 million shares are expected to be issued by The9 to complete the purchase of the machines. That's about 270,913 American depositary shares (ADS).Based on the company’s share price of $24.81 prior to signing the MOU, the deal is valued at $6.72 million.
The9 also said it completed the signing of definitive agreements for 12,246 units of bitcoin mining machines with a total hashrate of 288PH/S.According to the deal terms, The9 will issue 9,387,840 Class A share (equivalent to 312,928 New ADS) to the sellers, with a lockup period of six months.If the same ADS price as the earlier agreements were used, these pacts would be valued in total at about $7.76 million.
As reported by CoinDesk, bitcoin’s hashrate, which is a way to measure the total power consumption and mining output of the network, has topped a new all-time high as mining firms like The9 continue to add more hash power.
The9’s ADS were down a little more than 4% in recent trading to $27.21.
