Future FinTech Group Inc., which is a leading eCommerce-based blockchain and a fintech service provider, came up with an announcement. It said that they had signed a framework agreement with Nanjing Shunru Electronic Technology Co. Ltd. This agreement is for purchasing approximately 20000 Antminer bitcoin mining machines. It is going to provide a combined 200 Petahash per second hash rate. It is now accounting for about 0.12% of Bitcoin with the total hash rate capacity.
This mining hash rate is a very important metric for security for verifying bitcoin transactions. Also, it is very crucial for high hashing or computing processing power, which means much greater system scrutiny is facilitated for the transaction of bitcoins. The Frame Agreement is non-binding except for the Exclusivity and Confidentiality. Also, it excludes the applicable law and dispute resolution sections for the agreement.
According to the Frame Agreement, Nanjing Shunru is going to provide not less than 20000 Antminer mining machines to Future Fintech. Also, it guarantees a total Bitcoin hash rate with at least 200 PH/s for at least 180 days per year. If the hash rate is less than 200 PH/s, then Nanjing Shunru shall supplement the corresponding hash rate, along with additional Antminer mining machines, within 5 days at no additional cost.
The mining machines are going to deliver the pending further due diligence being on the part of the company with a definitive agreement. The purchase price of Antminer miner machines is RMB 50 million, of which RMB 10 million is going to be paid in cash. The remaining RMB 40 million is going to be paid in FTFT common stock.
The Chief Executive Officer of Future FinTech, Mr. Shanchun Huang, said, “The recent sharp increase in the price of Bitcoin has provided us with the opportunity and economic incentive to develop an encrypted digital currency mining business. The signing of the mining machine acquisition frame agreement is the first step for us to move into the bitcoin mining field. We will continue to optimize the company’s comprehensive platform in the field of cryptocurrency mining and blockchain technology services to maximize returns to our shareholders.”