Ault Global Holdings Announces Entry into Purchase Agreement to Acquire an Additional 3,000 S19j Pro Antminers With a Deployment Timeline Beginning in October 2021
September 15 2021 - 3:45PM
Business Wire
Company Authorizes Establishment of Crypto DeFi Focused
Subsidiary, BitNile, to Drive Expansion and Progress in Bitcoin
Mining and Data Center Operations
Ault Global Holdings, Inc. (NYSE American: DPW) a diversified
holding company (the “Company”), announced today that its
wholly owned subsidiary, Ault Alliance, Inc. (“Ault
Alliance”), has entered into a purchase agreement with Bitmain
Technologies Limited (“Bitmain”) for the purchase of 3,000
S19j Pro model Antminers (the “Antminers”) for a total
purchase price of $21 million and additional transaction costs of
approximately $2 million in addition to the 1,000 Antminers the
Company took delivery of earlier this week. The new Antminers will
be deployed at the Company’s Michigan data center (the “Data
Center”). The deployment of the 3,000 Antminers is scheduled to
occur monthly, generally coinciding with the delivery schedule of
300 units per month, between October 2021 and July 2022.
Alliance Cloud Services, LLC, a majority owned subsidiary of
Ault Alliance, acquired the Data Center, a 617,000 square foot
energy-efficient facility located on a 34.5-acre site, in January
2021. During June 2021, the Company announced its intent to expand
the infrastructure of its Data Center and increase the power
capacity to 28MWs. With the execution of this purchase agreement
with Bitmain and the delivery of the 1,000 Antminers, the Company
is well-positioned to increase the scale and scope of its
cryptocurrency and data center operations and is now moving forward
with the necessary upgrades to achieve maximum capacity at the Data
Center. The upgrades are projected to take approximately 18 months
and are expected to result in 300MWs of critical power under an
energy abatement agreement with fixed pricing at relatively low
energy rates for the next five years.
Based on the current market conditions related to bitcoin mining
and assuming the installation of all 4,000 Antminers which is
expected to be completed in July 2022, the Company anticipates the
gross revenue from its cryptocurrency mining operations to reach an
annual run rate of between $45 and $50 million. In August 2021, the
Company formed a new wholly owned subsidiary, BitNile, Inc.
(“BitNile”), which will hold the Company’s investment in the
Data Center and Antminers. While the Company believes that the
future operations of the Data Center and its cryptocurrency mining
operations will be successful, the Company cannot assure you that
its expectations will materialize in a timely manner, if at
all.
Milton “Todd” Ault, III, the Company’s Executive Chairman,
stated, “I’m thrilled with the progress achieved so far and am
confident, particularly having purchased an additional 3,000
Antminers, that BitNile’s operations will contribute meaningfully
to the Company’s growth in both revenues and profitability.” Ault
continued, “We believe BitNile’s long-term success and ability to
scale will be partially dependent on access to the private or
public equity markets to fund additional investments in Antminers
and the Data Center expansion.”
For more information on Ault Global Holdings and its
subsidiaries, the Company recommends that stockholders, investors
and any other interested parties read the Company’s public filings
and press releases available under the Investor Relations section
at www.AultGlobal.com or available at www.sec.gov.
About Ault Global Holdings, Inc.
Ault Global Holdings, Inc. is a diversified holding company
pursuing growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, the Company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial, automotive,
telecommunications, medical/biopharma, and textiles. In addition,
the Company extends credit to select entrepreneurial businesses
through a licensed lending subsidiary. Ault Global Holding’s
headquarters are located at 11411 Southern Highlands Parkway, Suite
240, Las Vegas, NV 89141; www.AultGlobal.com.
Forward-Looking Statements
This press release contains “forward looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.AultGlobal.com.
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