The9 Limited, an established China-based Internet company, today announced it signed a definitive agreement to acquire Montcrypto Ltd. Indeed, the latter company is a Canadian firm that, through the deal, will help The9 build a 20MW supply of electricity in Calgary, Canada.
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Moreover, the carbon-neutral infrastructure of Montcrypto will help provide a greener power supply to the cryptocurrency mining business of The9.
About the Montcrypto and The9 Agreement
Previously, Montcrypto had signed natural gas procurement contracts with local oil extraction companies. Besides, it plans to build carbon-neutral cryptocurrency mining facilities using natural gas as the source of electric power generation.
According to the Agreement, The9 plans to invest a total of CAD 7.6M in Montcrypto in two phases; particularly to obtain the company’s controlling stake.
Thus, upon completing the two phases, the power capacity of the mining facilities will be 20MW. Accordingly, it will be able to supply electricity to operate more than 6,000 S19j Antminers.
Worth noting, The9 proactively promotes implementing carbon neutrality strategies among its supply and demand chain partners. Similarly, Montcrypto has a complete solution for clean energy; thus, efficiently converting the byproduct of natural gas from oil drilling into low-cost electricity.
Thereby, the Company is supporting the construction of carbon-neutral cryptocurrency mining facilities.
Moreover, Montcrypto will cooperate with oil companies in the Calgary area to deploy mobile and modular cryptocurrency mining facilities at the oil well sites. Besides, the Company will convert natural gas through a series of processing procedures; such as recovery, pretreatment, and energy conversion of the natural gas.
As part of the agreement, The9 will pay a hosting fee to Montcrypto at a rate of CAD0.037/kWh for five years.
Similarly, The9 also announced closing the investment in Skychain Technologies Inc.; a cryptocurrency mining facilities company listed in TSX Venture Exchange in Canada. Indeed, this investment is for its expansion in the capacity from 20MW to 32MW.