AGM Group Holdings Inc. Announces Investment in Bitcoin Mining Equipment
Rhea-AI Summary
AGM Group Holdings (NASDAQ: AGMH) has entered into a purchase agreement through its Hong Kong subsidiary AGM Technology to acquire 2,000 Bitcoin mining machines from Canaan Creative Global. The agreement, effective December 1, 2024, also includes an option to acquire up to 30,000 additional BTC mining units with a combined power capacity not exceeding 300 megawatts, valid until December 31, 2025.
This strategic investment aligns with AGM Holdings' focus on the digital assets market and aims to strengthen its presence in the cryptocurrency sector. The company plans to leverage its hardware and software expertise to capture opportunities in the cryptocurrency and blockchain industries.
Positive
- Secured purchase of 2,000 Bitcoin mining machines
- Option to acquire 30,000 additional mining units until December 2025
- Strategic expansion into cryptocurrency mining sector
- Potential for significant mining capacity with 300 megawatts power option
Negative
- Significant capital expenditure required for mining equipment
- Exposure to volatile cryptocurrency market
News Market Reaction
On the day this news was published, AGMH declined 2.91%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Beijing, Dec. 13, 2024 (GLOBE NEWSWIRE) -- AGM Group Holdings Inc. (“AGM Holdings” or the “Company”) (NASDAQ: AGMH), an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment, has announced today that the Company, through its wholly owned Hong Kong subsidiary AGM Technology Limited, entered into a purchase agreement (the “Agreement”) to acquire 2,000 units of Bitcoin (“BTC”) mining machines from Canaan Creative Global Pte Ltd. (“Canaan”), a Singapore-based company. This transaction strategically aligns with AGM Holdings’ long-term vision to focus on the rapidly evolving digital assets market and to further advance innovative technology.
Pursuant to the Agreement, the purchase of the 2,000 BTC miners became effective as of December 1, 2024. Additionally, the Company has secured an option to acquire up to approximately 30,000 additional BTC mining units, with a combined power capacity not exceeding 300 megawatts, valid until December 31, 2025.
This significant milestone underscores AGM Holdings’ commitment to strengthening its market presence in the fast-growing cryptocurrency sector. By capitalizing on the increasing demand for digital assets and leveraging its expertise in hardware and software solutions, the Company is well-positioned to capture emerging opportunities within the cryptocurrency and blockchain industries, driving sustainable growth and value creation for its stakeholders.
Canaan is a wholly owned subsidiary of Canaan Inc. Established in 2013, Canaan Inc. is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan Inc. has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology in bitcoin's history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market where it trades under the ticker CAN.
About AGM Group Holdings Inc.
AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment. With a mission to become a key participant and contributor in the global blockchain ecosystem, AGMH focuses on the research and development of blockchain-oriented Application-Specific Integrated Circuit (ASIC) chips, the assembling and sales of high-end crypto miners for Bitcoin and other cryptocurrencies. For more information, please visit www.agmprime.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "assesses," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
For more information, please contact:
AGM Group Holdings Inc.
Email: ir@agmprime.com
Website: http://www.agmprime.com
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
FAQ
How many Bitcoin mining machines did AGMH purchase in December 2024?
What is the additional mining unit option available to AGMH?
When does AGMH's option to purchase additional mining units expire?
What is the maximum power capacity of AGMH's potential mining expansion?
Who is AGMH's supplier for the Bitcoin mining machines?
