The9 Limited (NASDAQ:NCTY) is one of the notable gainers in the small cap list as the stock jumps on high volume.
The9 Signed a Definitive Agreement to Acquire a Canadian Clean Energy Cryptocurrency Mining Facilities Company
- announced that it signed a definitive agreement (the “Agreement”) to acquire Montcrypto Ltd. (“Montcrypto”), a Canadian company, to build a 20MW supply of electricity in Calgary, Canada. The carbon-neutral infrastructure of Montcrypto provides a greener and more environmentally friendly power supply to the cryptocurrency mining business of The9.
- Montcrypto had signed natural gas procurement contracts with local oil extraction companies and plans to build carbon-neutral cryptocurrency mining facilities by using natural gas as the source of electricity power generation.
- According to the Agreement, The9 plans to invest a total of CAD7.6 million in Montcrypto in two phases to obtain the controlling stake in Montcrypto. Upon the completion of the two phases, the power capacity of the mining facilities will be 20MW, which can supply electricity to operate more than 6,000 S19j Antminers.
- Reducing carbon emissions and achieving carbon neutrality have been the consensus among most governments and enterprises in the world. The9 also proactively promotes the implementation of carbon neutrality strategies among its supply and demand chain partners. Montcrypto has a complete solution for the use of clean energy, which can efficiently convert the byproduct natural gas from oil drilling into low-cost electricity, thereby supporting the construction of carbon-neutral cryptocurrency mining facilities.
Market Action
As of 12:17, NCTY stock soared by 23.58% to $13.52 with more than 17.18 million shares traded hands, compared to its average volume of 2.02 million shares. The stock has moved within a range of $12.45 – 14.60 after opening the trade at $13.10.
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