Future Fintech To Acquire Majority Stake In Cryptocurrency Mining Farm Mingtang Network Technology For $7M

Blockchain-based e-commerce business and fintech service provider, Future FinTech Group Inc FTFT, has inked an agreement to acquire a 51% stake in Mingtang Network Technology for $7 million (RMB 45.9 million) based on a valuation of $13.8 million (RMB 90 million).
Mingtang Network operates a cryptocurrency mining farm that integrates big data collection, cloud storage, and advanced computer software and hardware operations into an industrial data analysis system and information storage system.
Phase I of Mingtang Network's data center had a 50,000-capacity load for cryptocurrency mining machines, the ability to run big data mining applications, and was fully operational. It also had 300,000 sets of mechanical and electrical equipment on site.
The sellers promised a minimum EBIT of $6.1 million (RMB 40 million) in 2021.
Both the parties agreed to invest around $91.7 million (RMB 600 million) in the construction of a Phase II data center of a 500,000-capacity load for cryptocurrency mining machines under the ownership percentage ratio.
Future FinTech had recently raised $35 million from a private institutional offering.
Price action: FTFT shares traded lower by 5.24% at $4.70 in the premarket session on the last check Wednesday.