The9 Limited [NASDAQ: NCTY] has inked an MoU with an irrelevant Bitcoin mining machine owner to buy Bitcoin mining machines by the grant of Class A common shares. The9 also disclosed that it finalized the inking of the deal for 12,246 units of Bitcoin mining machines with a total hash rate of nearly 288PH/S.
Shares of The9 Limited soared more than 14% during the trading session of Thursday. Its share went up 0.81% during the pre-market trading session of Friday. NCTY has a total market capitalization of $307.57 million at the time of writing.
Terms of New MoU
As per the new MoU, NCTY will grant nearly 8,127,390 Class A ordinary shares equal to 270,913 ADSs to the traders based on the NCTY share price of US$24.81 before the MOU, with a lock-up duration of 6 months. The number of Class A ordinary shares to be granted is dependent on certain price modification mechanisms to be evaluated 6 months after the inking of the complete deal.
For 2,246 units of Bitcoin mining machines, the number of Class A common shares to be granted is computed with reference to the fair market values on the valuation reports granted by an autonomous evaluation firm and The9 share price before the corresponding MoU inking date. The9 will grant a total number of 9,387,840 Class A ordinary shares equal to 312,928 ADSs to the sellers, with a lock-up period of 6 months.
Hash Rate of the Bitcoin Mining Machines
The firm has disclosed that the hash rate of 2,000 units of AvalonMiners is nearly 100PH/S. On the other hand, 2,246 units of Bitcoin mining machines have a total hash rate of nearly 288PH/S.