Benzinga | Apr 14, 2021 09:30AM EDT

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 (NASDAQ: 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.