Shares of Future FinTech Group Inc. (FTFT) stock were high in today’s pre-market after the spread of the news that FTFT and shareholders of Nanjing Ribensi Electronic Technology Co., Ltd have entered into the framework agreement to acquire Nanjing Ribensi, a Bitcoin Mining Farm. FTFT stock price a surge of 25.48% to reach $7.78 a share as of this writing. FTFT stock was red in the previous trading session and a downtrend of 1.59% was recorded at closing. Let’s understand the current happening in more depth.
Acquisition of Nanjing Ribensi
Nanjing Ribensi is currently operating as the Bitcoin Mining Form that has the capacity to operate 30,000 mining machines. According to the agreement, FTFT has now the acquisition of Nanjing Ribensi, which is located in Yajiang County, Sichuan Province, China, and is approved by the government. This Bitcoin mining farm is equipped with mining machines and is functional to mine Bitcoins and other cryptocurrencies. Future FinTech will pay RMB 60 million amount for this acquisition.
According to the seller, Nanjing Ribensi will generate a net profit of more than RMB 15 million in 2021, RMB 20 million for 2022, and RMB 25 million in 2023. If Nanjing Ribensi fails to achieve these targets, then the seller will compensate for the shortfalls attributed to the above estimates. Moreover, the seller has assured the guarantee that this Mining Farm will continue its normal operation for at least 6 to 8 years, and maintenance, management, and mining equipment will be the responsibility of the current Nanjing Ribensi team in this tenure.
Acquisition of Antminer Bitcoin Mining Machines
Two days ago, on March 29, 2021, FTFT did announce the framework acquisition agreement with Nanjing Shunru Electronic Technology Co., Ltd in order to buy nearly 20,000 Antminer bitcoin mining machines. These machines would be responsible for hash rate capacity of 0.12% of Bitcoin by providing a combined 200 Petahash per second (PH/s) hash rate. The purchase price for this acquisition was totaled RMB 50 million.
The acquisition news of the Bitcoin mining farm by Future Fintech has made the FTFT stock green in today’s pre-market trading session. The management is optimistic that this mining farm would generate massive profit and local hydroelectricity for running machines of this mining farm would cost-efficient.