The stock of Future FinTech Group Inc. (FTFT) gained in the pre-market after the company announced an agreement with APC to build a cryptocurrency mining farm in the United States. The stock valued at $1.08 gaining 7% from the previously closed value. At the end of the last trading session the stock closed at $1.01. The volume of the stock traded on the last trading session was approximately 1.18 million shares.
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Reason of the stock gain:
On 17th December, 2021 the company announced that they have signed an agreement with APC Services Limited. According to the deal they will they establish a joint venture in Ohio to build a cryptocurrency mining farm. In the first phase they will build a farm with 50MW of processing power, if it goes successful the project will be expanded to the size of 300MW. It is expected that after the completion of the first phase establishing a mining site of 50MW, it is forecasted to deploy approximately 12,000 S19 Antminers and facilitate about 1.3 EH/s of hash power.
At first the FinTech Group Inc. (FTFT) will establish their solely owned subsidiary FTFT supercomputing. The subsidiary will be authorized to operate all the business in Ohio either to invest in, develop or manage the cryptocurrency mining farm. According to the agreement when the first phase is completed the APC will have a right to acquire a maximum of 30% share in the FTFT supercomputing within the first 365 days. The total capacity of the cryptocurrency mining farm is estimated to be 300 MW which will be utilized in the expansion process of 6 phases consisting of 50 MW processing power each.
The total project is estimated to be completed in $62 million, having 6 phases each worth of $10 million. But $12 million will allocated for the first phase to carry out the process of land acquisition, plant development and power system upgradation system.
Effect on the stock:
The stock of the company gained after the news of the major development in the business of the company hit the market. The investors are responding positively to the joint venture of the two companies to form a partnership of the Future FinTech.
Conclusion:
This is a major development in the business of the company is expected to increase the productivity of the company which will increase its profitability. Investors are looking forward to a good capital gain in the future.
