Benzinga | Jun 3, 2021 08:27AM EDT

Code Chain New Continent Announces Joint Venture With Zhongyou Technology, Ltd To 'pursue the development and operation of cryptocurrency mining with zero carbon footprint.'; JV Registered Capital Is $1M And Will Be Contributed 100% In Cash By Code Chain

Code Chain New Continent Limited (the "Company," or "Code Chain" or "We") (NASDAQ:CCNC), a leading eco-technology company, today announced that the Company entered into a Joint Venture Agreement ("JV Agreement") with Zhongyou Technology (Shenzhen) Co., Ltd. ("Zhongyou") on June 1, 2021. This agreement establishes a joint venture company, named "Carbon Zero Renewables (Shenzhen) Co., Ltd." (the "JV Company"), to pursue the development and operation of cryptocurrency mining with zero carbon footprint.

Pursuant to the JV Agreement, JV Company's registered capital is $1 million and will be contributed 100% in cash by Code Chain. Zhongyou will be responsible for providing teams of technical experts and operating staff, as well as intellectual property rights and know-how. Code Chain and Zhongyou will each own 51% and 49% of the JV Company, respectively.

The JV Company's mission is to use digital technology to open up the renewable energy industry chain's upstream and downstream, growing the renewables infrastructure portfolio in the process. The scope of the business is to create a platform to achieve carbon neutrality while upgrading industry transformation, boosting revenues, and adapting to changing market dynamics and volatility.

David (Weidong) Feng, Co-CEO of the Company, commented, "We are pleased to partner with Zhongyou as we continue our strategic transformation for using energy and digital infrastructure growth platform in cryptocurrency mining. As concerns grow over the high energy usage of cryptocurrency mining and its burden to the environment, the establishment of this joint venture will become an important driving force for jointly developing carbon neutral cryptocurrency mining operations. With the combined strengths of our teams, the joint venture will allow us to disrupt high-cost cryptocurrency mining more quickly by using the latest renewables-powered mining technology."