Hatten Land to start operations of 50 crypto mining rigs by end-January with SMI CS agreement

CATALIST-listed Hatten Land PH0 : PH0 0%announced that its subsidiary Hatten Edge has signed an agreement with SMI Vantage's subsidiary SMI CS, which will allow the pilot phase of its first 50 sets of crypto mining rigs to commence operations by the end of this month.

This is further linked to the memorandum of understanding that Hatten Land inked with mainboard-listed SMI Vantage in September 2021 to jointly explore business opportunities in crypto mining, the Malaysian property developer said in a bourse filing on Thursday (Jan 13).

Despite pointing out in December that it is facing supply chain challenges, Hatten Land now says that it is on track to install and operate over 2,500 sets of crypto mining rigs within its properties in 2022. The agreement with SMI CS also comes after the group confirmed its first shipment of 80 crypto mining rigs with partner Frontier Digital Management on Tuesday.

Under the newly signed agreement, the group will commence cryptocurrency mining activities with its first 50 sets of crypto mining rigs delivered by SMI CS and installed by the end of January. This will be followed by the next batch of 1,500 crypto mining rigs to be installed from February to March 2022.

In addition, SMI CS has the option to provide another 1,000 sets of crypto mining equipment in 2022. This will bring the total number of crypto mining rigs provided by SMI CS to more than 2,500 sets.

Under the terms of agreement, Hatten Edge will be responsible for the installation of the mining rigs at the facilities upon delivery, while SMI CS is responsible for safeguarding the confidentiality and integrity of the crypto-wallet that will contain the mined cryptocurrencies.

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In addition, SMI has entered into an agreement with Nasdaq-listed technology company The9 to procure 3,000 crypto mining rigs, with an option to buy 2,000 more crypto mining rigs, said Hatten Land. This will allow the group to progressively scale up their crypto mining operations, it added.

Both companies will share the net proceeds of the mined cryptocurrencies after deducting related operational and management expenses.

The group expects its agreement with SMI CS to contribute positively to its net assets and financial performance for the financial year ending Jun 30, 2022.

Shares of the counter closed at S$0.052, up S$0.003 on Thursday after the announcement.