A Chinese gaming company, The9, has proposed to build and run a crypto mining plant, with the capacity of 200 MW, in the landlocked country, Kazakhstan for which it is in need of a partner. The company has proposed that it would like to enter into a Joint Venture Agreement (JV Agreement) with a company that has to be from and within Kazakhstan. The Kazakhstan-based partner will also be responsible for supplying the technical assistance for the maintenance of the mining equipment to be installed in the future plant.
The9 is one of the major computer as well as an internet company which is registered and headquartered in China. In recent times, The9 had established a subsidiary called “NBTC” in Kazakhstan for the purposes of extending its mining operations. An agreement for investment has been entered into between The9 and NBTC. Under the agreement, NBTC has been tasked to enter into a JV Agreement with a Kazakhstan-registered company. The sole objective of the JG Agreement would be for the establishment of a crypto-aimed plant with a capacity of 200 MW.
Currently, NBTC is looking for a potential partner which can assist the company in pursuing its objective of building a plant in Kazakhstan. NBTC is seeking a partner which can work side by side with NBTC for developing the proposed plant. NBTC is also expecting that its JV Partner will also render technical assistance for the maintenance and upkeep of the mining equipment.
NBTC has also informed about the partnership structure. For instance, it has been informed that NBTC is looking for a partner who will own 49% shares of the JV Company. The major shareholder of the JV Company would be NBTC, with a shareholding of 51%. Clearly, NBTC is intending to become the controlling shareholder of the company with a majority decision in the Board of Directors of the JV Company. The JV Agreement is proposed to be for two years within which time, the project has to be completed.
The9 has further informed that it has planned to house about 50 thousand mining rigs of Antminer’s S19 models in the plant. This will allow the JV Company to accommodate mining operations with almost 5 EH/s hashpower. Further conditions of the JV details that JV members would make sure that 100MW of power should be made available before 2022.
The9 has further informed that in recent times it is trying to expand its mining operations outside China. Especially, the company wishes to expand operations in countries which electricity cost is cheaper while there is no shortage of power. However, another major reason for The9’s strategy change is because of the non-friendly environment of the crypto business in China. Chinese miners are in fact migrating one after the other into countries outside China and The9 is one of them.