Benzinga | Apr 14, 2021 09:36AM EDT

Inpixon Says Converts Note Receivable To Equity In Ethereum Mining Company

Inpixon (NASDAQ:INPX), the Indoor Intelligence(tm) company, today announced that it has converted a note receivable due from Sysorex, Inc. (OTCQB:SYSX), in an aggregate amount of approximately $9.0 million, into shares of Sysorex common stock valued at approximately $17 million (including the shares underlying rights to acquire Sysorex common stock), based on the closing price of Sysorex's common stock as of April 13, 2021.

Concurrent with the conversion of the note receivable, Sysorex announced the closing of a reverse triangular merger with TTM Digital Assets & Technologies, Inc. ("TTM"), a data center owner and operator primarily engaged in the business of mining Ethereum and additional cryptocurrencies. Founded in 2017, TTM was an early participant in Ethereum blockchain and TTM believes it is the largest Ethereum miner on the U.S. public markets. As a result of the transaction, Sysorex will adopt TTM's business and operations, while also continuing to operate the existing business through its wholly-owned subsidiary, Sysorex Government Services, Inc.

"The prevalence of Bitcoin, Ethereum and other digital currencies and their values have risen substantially over the past several years and dramatically in the past six months. The use of Ethereum for non-fungible tokens (NFTs), development of apps and peer-to-peer financial transactions are becoming increasingly mainstream, and marquee financial institutions and other household name organizations are accepting digital currencies and also adding this asset class to their balance sheets," commented Nadir Ali, CEO of Inpixon. "While Inpixon has no plans to enter the crypto mining business, we look forward to capitalizing on what we believe is an attractive opportunity at the right time to maximize value for our shareholders."

For additional details, please reference Inpixon's current report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.