Sino-Global (SINO) Announces Purchase of 2,783 Digital Currency Operation Servers
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Sino-Global Shipping America, Ltd. (NASDAQ: SINO) ("Sino-Global," the "Company" or "We"), a non-asset based global shipping and freight logistical integrated solutions provider, announced today the execution of a purchase agreement (the "Agreement") of 2,783 digital currency operation servers (the "Products") for RMB 30 million (approximately USD 4.6 million) from Hebei Yanghuai Technology Co., Ltd. ("Yanghuai"), reaching a total of 50,440 t/s in computing power. This purchase is another step in the Company's recent strategic expansion into the digital currency market.
Under the terms of the Agreement, Sino-Global anticipates owning 2,783 units of Products, which consist of 449 units of model Love Core A1, 150 units of model Core Motion T2T, 500 units of Ant S9, and 1,684 units of model Avalon 910/910S. After the transaction is completed, Yanghuai will manage and operate the Products at Yanghuai's site with no further charge for three years, after which time Sino-Global may engage Yanghuai to continue providing service for a fee.
The first cash payment of RMB 6 million (approximately USD 926,612) will be paid within 15 days after the date of signing the Agreement and the second cash payment of RMB 6 million (approximately USD 926,612) will be paid within 15 days after the date of acceptance of the Products. The remaining payment of RMB 18 million (approximately USD 2,780,000) will be paid quarterly within 10 days following the filing of Form 10-K or Form 10-Q, subject to reductions if Yanghuai falls below aggregate monthly committed net profit of approximately RMB 2.37 million (approximately USD 0.37 million).
Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented, "We are excited to announce the purchase order, which demonstrates the efficiency of our management team's ability to pivot and execute a new venture into cryptocurrencies. To provide transparency on the mining operations and daily probabilities to our shareholders, the Company will disclose the digital currency wallet addresses once they are available. We are confident with the opportunity presented to us from the digital currency industry and our capability to capture the growth in furtherance of our strategy to maximize our shareholder value."
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