September 26, 2022

The crypto miner expects the 31.5 MW facility to be ready in July.

Source: Coindesk.com
Source: Coindesk.com

Nasdaq-listed crypto miner The9 (NCTY) bought a data center in Kyrgyzstan, where it will install 7,500 Bitmain Antminer S19j bitcoin mining rigs, the firm said in a press release on Wednesday.

The data center, acquired by The9’s wholly owned subsidiary NBTC Ltd. and Kyrgyzstan firm SolarCoin LLC., will be powered by 31.5 megawatts (MW) and contribute 675 petahash/second of computing power, the press release said.

The firm expects development to finish in July and electricity to cost 5 cents per kilowatt hour, according to the press release.

Under the agreement, The9 will acquire ownership of 31.5 MW of transformers, along with their supporting low-voltage equipment, plant, network equipment, and the right to use the facility’s high-voltage equipment and land.

The9 has seen its shares plummet in the last six months, along with other crypto mining stocks. The shares have lost almost 90% of their value, plunging from $11.55 on Nov. 11 to $1.48 at market close on Tuesday.

Originally an internet firm with operations in China, The9 entered crypto mining at the start of 2021. Following China’s ban on the industry, it set up operations in Kazakhstan, Canada and the U.S. It also started a marketplace for non-fungible tokens.