Singapore Myanmar Investco (SMI) has entered a non-binding, but comprehensive, memorandum of understanding (MOU) with Nasdaq-listed The9 to launch a cryptocurrency mining business, the Singapore-listed company said in a filing to SGX Thursday.
“SMI is delighted to embark on this initial range of mining products and services, making it easier for customers in our region to participate in cryptocurrency mining,” Mark Bedingham, president and CEO of SMI, said in the statement.
“We will continue to work with The9 and other partners to bring a range of other leading digital products and services to market, as we pivot SMI away from its traditional businesses,” he added.
The mining business will focus initially on three cryptocurrencies — Bitcoin, Filecoin and Chia — and will be hosted in facilities across Canada, the U.S., Central Asia and Southeast Asia, the filing said. Business is expected to begin in the fourth quarter, subject to regulatory approval, SMI said.
SMI added it had also entered an agreement for cryptocurrency mining software-as-a-services (SaaS) provider NHASH (Hang Zhou Suan Li Technology) to provide technical support services for five years, with an option to extend for an additional five years.
The agreement includes the option to purchase up to 4,000 crypto-mining machines for an amount to be agreed upon later, SMI said.
In late June, SMI announced its plan to pivot its business away from investments in Myanmar, which were focused on consumer spending, international tourism and infrastructure, to pursue cryptocurrency, SaaS and other technology platforms. The move is subject to a vote by shareholders in an extraordinary general meeting to be held later this year.
In June, The9 also entered a subscription agreement for new shares in SMI, the statement said.