The9 Limited (NASDAQ:NCTY) stock is soaring higher on Friday following news of a crypto mining deal with Skychain Technologies (OTCMKTS:SKTCF).
The deal between the two companies has The9 Limited taking out a 9.9% stake in Skychain Technologies. It’s doing so through a $4 million investment in the crypto mining company.
The agreement has The9 Limited subscribing to “$2,000,000 of transferable, convertible debentures” at a price of 85 cents each. It also includes another $2 million for debentures at a price of 76 cents each.
Each of the units is made up of one share, as well as one transferable share warrant. The warrants are exercisable into a common share at a price of $1.22. They can be exercised anytime after the three-year anniversary of the offer closing.
Skychain Technologies notes that it has approval from the TSX Venture Exchange to move forward with the offering. This has it supplying The9 Limited with the debentures and 1,620,951 units for its 9.9% stake in the company.
So what exactly does Skychain Technologies plans to do with the $4 million of funding from The9 Limited? The company intends to use these funds to create a 12 MW cryptocurrency hosting facility in Birtle, Manitoba.
Bill Zhang, CEO of Skychain Technologies, said this about the deal today.
“The closing of this financing is a significant milestone in our Company’s growth strategy. It is a great opportunity for us to meet the rapidly increasing market demand for crypto hosting services by bringing the Birtle facility into operation.”
NCTY stock is seeing heavy trading on today’s news. As of this writing, more than 13 million shares of the stock have changed hands. That’s quite the jump from its daily average trading volume of 2 million shares.
NCTY stock was up 16.9% and SKTCF was down 1% as of Friday morning.
There’s plenty of other stock market news for investors to read about below.
That includes the latest market news for Friday. A few examples include Tesla (NASDAQ:TSLA) CEO Elon Musk planning to open a restuarant, what has Senseonics (NYSEMKT:SENS) stock on the move, as well as the news affecting Pershing Square Tontine Holdings (NYSE:PSTH) today. You can check out all of that at the following links!
More Stock Market News for Friday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
