(Editor’s Note: At the time of writing this article, FTFT stock was up. However, it has since fallen and started dipping lower in morning trading.)
Future FinTech (NASDAQ:FTFT) stock is up on Thursday after announcing a deal with Bitcoin (CCC:BTC-USD) mining company Nanjing Ribensi Electronic Technology.
The deal between these two companies sets up the framework for Future FinTech to acquire Nanjing Ribensi Electronic Technology. This will have it paying $9.3 million to bring the bitcoin mining company under its control.
The agreement between the two companies includes safety nets for Future FinTech should the bitcoin business not bring in as much in net profits as expected. If net profit isn’t $2.3 million in 2021, $3 million in 2022, and $3.8 million in 2023, the sellers of Nanjing Ribensi Electronic Technology will cover any shortfalls.
Nanjing Ribensi Electronic Technology operates a bitcoin mining farm with a total of 30,000 mining machines. The farm is located in Yajiang County, Sichuan Province, China and already has all the proper government approvals.
It’s also worth noting that the deal guarantees that the bitcoin mining farm will continue normal operations for six to eight years. Nanjing Ribensi Electronic Technology’s current operations team will also remain in place after the deal closes. They will handle operating, maintaining, and updating the equipment.
Shanchun Huang, CEO of Future FinTech, sai this about the bitcoin mining deal boosting FTFT stock up today.
“The bitcoin mining farm that we have targeted for potential acquisition not only enables us to deploy advanced bitcoin mining machines, but to potentially generate profits due to the expected low energy cost of the target mining farm since it uses local low cost of hydroelectricity to run the mining machines.”
FTFT stock is seeing heavy trading on today’s news. As of this writing, more than 84 million shares of the stock have traded. For comparison, its daily average trading volume is 13.6 million shares.
FTFT stock was up 2.3% as of Thursday morning.
Future FinTech isn’t the only company with an interest in bitcoin mining.
There are plenty of other companies out there that want to cash in on the bitcoin hype. Some examples include Grayscale Bitcoin Trust (OTCMKTS:GBTC), Riot Blockchain (NASDAQ:RIOT), and others. Investors can catch up on the latest bitcoin news from InvestorPlace.com below.
More Bitcoin News
- Closer Than Ever to a Huge Crypto Catalyst – A Bitcoin ETF
- Bitcoin’s Price Is Not the Only Risk to Riot Blockchain
- Bitcoin Price Prediction 2021: What BTC Investors Are Saying
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.