Benzinga | Jun 4, 2021 06:38AM EDT

The9 to Acquire Canadian Crypto Mining Facilities Company Montcrypto for $C$7.6M

* Chinese internet company The9 Ltd (NASDAQ:NCTY) inked an agreement to acquire Canada's Montcrypto Ltd to build a 20MW electricity supply in Calgary, Canada.

* Under the arrangement, The9 plans to invest C$7.6 million in Montcrypto in two phases to obtain a controlling stake.

* After completion, the 20MW power capacity of the mining facilities can supply electricity to operate over 6,000 S19j Antminers.

* The carbon-neutral infrastructure of Montcrypto offers a greener and more environmentally friendly power supply to The9's cryptocurrency mining business.

* Montcrypto forged natural gas procurement contracts with local oil extraction companies and planned to build carbon-neutral cryptocurrency mining facilities using natural gas.

* The9 will pay a hosting fee at a rate of C$0.037/kWh to Montcrypto for five years.

* The9 held $4.9 million in cash and equivalents as of Dec. 31, 2020.

* Price action: NCTY shares traded higher by 4.66% at $11.45 in the premarket session on the last check Friday.