Nasdaq-listed crypto mining company The9 (NCTY) has purchased a data center in Kyrgyzstan where it will install 7,500 Bitmain Antminer S19j bitcoin mining rigs, the company said in a press release Wednesday.
- The data center, acquired from The9's wholly-owned subsidiary NBTC Limited and Kyrgyz firm SolarCoin LLC. will be powered by 31.5 megawatts (MW) and will deliver 675 petahash/second of computing power, the press release said.
- The company expects development to be completed in July and the power will cost $0.05 per kilowatt-hour, the press release states.
- Under the agreement, The9 will acquire ownership of 31.5 megawatts (MW) of transformers and related low-voltage equipment, facilities, grid equipment and the right to use the facility's high-voltage equipment and land.
- Shares of The9 have fallen sharply over the past six months, along with other crypto mining stocks. NCTY shares, which trade on Nasdaq, have lost nearly 90% of their value, falling from $11.55 on Nov. 11 to $1.48 at Tuesday's close.
- Originally an Internet company with operations in China, The9 entered crypto mining in early 2021. After the industry was banned in China, the company established operations in Kazakhstan, Canada and the U.S. and launched a marketplace for non-fungible tokens.