Benzinga | Apr 1, 2021 08:44AM EDT

Future Fintech Stock Is Trading Higher On Acquiring Hydroelectricity Powered Bitcoin Mining Farm For $9.1M

* Blockchain-based e-commerce business and a fintech service provider, Future FinTech Group Inc (NASDAQ: FTFT), inked an agreement to acquire Nanjing Ribensi Electronic Technology Co, Ltd for $9.1 million (RMB 60 million).

* Nanjing Ribensi currently operates a bitcoin mining farm with an operating capacity of 30,000 bitcoin mining machines.

* Future FinTech's target bitcoin mining farm is located in Yajiang County, Sichuan Province, China.

* The sellers have provided a minimum net profit guarantee of $2.3 million (RMB 15 million) for 2021, $3 million (RMB 20 million) for 2022, and $3.8 million (RMB 25 million) for 2023.

* The target farm will help Future FinTech deploy advanced bitcoin mining machines and gain from the cheaper hydro electricity-powered mining machines.

* Future FinTech held cash and cash equivalent of $0.958 million as of September 30, 2020.

* Price action: FTFT shares traded higher by 24.4% at $7.71 in the premarket session on the last check Thursday.