HONG KONG, April 19, 2021 /PRNewswire/ — Lion Group Holding Ltd. (“Lion” or “the Company”) (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors, today announced that its subsidiary Lion Wealth Limited (the “Buyer” or “Lion Wealth”), a wholly-owned subsidiary of Lion, entered into an antminer transfer and maintenance agreement (the “Agreement”) with Shanghai Minebaba Network Technology Co., Ltd. (the “Maintenance Party”) and its affiliate (the “Seller”), to acquire 5,000 brand new units of Bitmain Antminers S9 Hydro (the “Equipment”) in a single transaction. The Equipment will be deployed in Sichuan, China and used for Bitcoin mining.
Mr. Chunning (Wilson) Wang, Chief Executive Officer of Lion, commented: “Crypto markets have observed four major price cycles since 2010, which typically last durations ranging for several years. Lion has decided to bring in this technology to capture this trend and meet our customers’ ongoing demands to trade and invest in crypto assets. Following the acquisition of Lion FinTech Group earlier this month, this new movement marks another steady step to expand our business into the crypto asset market. We believe that cryptocurrency will become a major asset to our customers and drive long-term value.”
Under the terms of the Agreement, ownership of the Equipment will be transferred from the Seller to the Buyer for a total price of about RMB17 million (about $2.6 million). The Equipment is expected to contribute revenue (net of electricity cost) of RMB 30 million (about $4.6 million) in 2021, based on 90PH/S of hashing power generated, estimated power consumption and current Bitcoin price.
The deal is expected to close by May 2021, upon onsite inspection and acceptance and payment. After the transaction is completed, the Maintenance Party will continue to handle its operations. Utilizing the trading license held by Lion FinTech Group in Dubai, Lion intends the Bitcoins awarded through its mining activities for serving its customers’ needs in investing and trading crypto assets. Lion expects the lifetime of the Equipment to be approximately three years.
Lion Group Holding Ltd. (NASDAQ: LGHL) operates an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors. Through its state-of-the-art technology, Lion offers contract-for-difference (CFD) trading, insurance brokerage, futures brokerage, and securities brokerage on its platform, which can be accessed through applications available on the iOS, Android, Windows, and macOS systems. Lion’s customers are well-educated and affluent Chinese individual investors residing both inside and outside the PRC as well as institutional clients in Hong Kong. Additional information may be found at http://ir.liongrouphl.com.
This press release contains, “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Lion’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, Lion’s expectations with respect to future performance and anticipated financial impacts of the Business combination, the satisfaction of the closing conditions to the business combination and the timing of the completion of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results…