Moxian, Inc. (MOXC) Divests Chinese Subsidiaries

Moxian (BVI) Inc (“Moxian” or the “Company”) (NASDAQ: MOXC), a company engaged in bitcoin mining and related services in the United States, today announced that the Company’s wholly-owned subsidiary, Moxian Group Limited (“Moxian”), has signed an Equity Transfer Agreement (“the Agreement”) with Jiantao Liu, a resident of China, for the disposal of all of the equity interest of Moxian (Hong Kong) Limited (“Moxian Hong Kong”) for a cash consideration of HKD 1,000. Mr. Liu is an affiliate of Mr. Qinghu Hao, a former director and Chairman of the Company until his resignation from the Board of Directors in March 2022. Mr. Hao, who was appointed a director of the Company in January 2016, had been instrumental in the establishment and operations of Moxian Hong Kong and its wholly-owned subsidiaries in China, which were primarily engaged in mobile payment applications and digital advertising in the Games Channel of the New Xinhua App.

The divestment of Moxian Hong Kong and its wholly-owned subsidiaries was not considered a significant transaction to the Company given that those entities had been operating at a loss since their inception and their carrying values in the consolidated financial statements in each of the last three fiscal years were not substantial. The mobile payment application business ceased in September 2018 whilst advertising income has fallen sharply in the recent years. The Board considered the divestment to be in the best interest of the Company, as the future outlook of these businesses appeared to be uncertain, especially in light of the recent tightening of controls by the government over the gaming business and increasing concerns over the privacy of personal data.

Mr. Conglin (Forrest) Deng, the Executive Director and Chief Executive Officer of the Company, commented, “With the support of the shareholders, the Company sees its future in bitcoin mining operations and related activities as crypto mining business provides a steady flow of revenue. Despite the recent fluctuation in the bitcoin prices, we believe the longer-term outlook for crypto currencies remains positive. The Company will also seek other business development and investment opportunities as and when they arise.”

Since early March 2022, the Company has operated bitcoin miners in the States of New York and Georgia in the United States. With this divestment, the Company no longer conducts operations in the People’s Republic of China. The Company is currently in the process of relocating its principal executive offices to the U.S.

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