- BITMAIN’s S19J Pro crypto mining rig is considered to be one of the most productive mining rigs in the market.
- Pilot phase of the first 50 sets of brand new S19J Pro crypto mining rig is targeted to commence operations by 30 April 2022 with an option to deliver additional 500 crypto mining rigs in 2022.
- Targeting new opportunities to utilise top-end crypto mining rigs to expand and scale up the Group’s crypto mining operations with the reopening of borders between Singapore and Malaysia.
- Property sale, retail and hospitality business activities under Hatten Land’s property portfolio will be able to accept cryptocurrencies for transactions and payments.
Hatten Land Limited (“Hatten Land”, “Company”, and together with its subsidiaries, the “Group”) is pleased to announce today that its wholly-owned subsidiary Hatten Edge Pte. Ltd. (“Hatten Edge”) has entered into a Crypto Mining Facility and Support Services Agreement (“Agreement”) with a new business partner (“Partner”), where up to 550 crypto mining rigs can be added to the Group’s crypto mining activities and deployed across its crypto mining facilities in Melaka.
The Partner agrees to deliver 50 sets of S19J Pro as pilot batch machines by end of April 2022 for Crypto Mining operation to location(s) designated by Hatten Edge for the provision of Crypto Mining services. Produced by BITMAIN, the world’s leading manufacturer of digital currency mining servers, S19J Pro is the top-of-the-line model and is considered to be one of the most productive and energy-efficient mining rigs in the market. Under the Agreement, the pilot batch of rigs will be delivered and installed by 30 April 2022 with the option of delivering an additional 500 in 2022.
Since its strategic pivot towards the digital economy in late 2021, the Group has gained strong momentum in partnering with established crypto mining operators, including the Partner, who are attracted by the Group’s large-scale, high-quality mining facilities and collaborative business model. In addition, as an SGX listed company, there are added assurances on Hatten Land’s compliance and professionalism.
The Partner and its owner have hundreds of crypto mining rigs operating within Southeast Asia currently, including Peninsular Malaysia, East Malaysia and Laos, and endeavours to expand its crypto mining operations with Hatten in Melaka.
Both companies will share the net proceeds of the cryptocurrencies that are mined after deducting the related operational and management expenses. As such, the Agreement is expected to contribute positively to the net assets and financial performance of the Group for the financial year ending 30 June 2022, barring unforeseen circumstances.
The Group’s strategy is to leverage its existing physical assets to provide a secure and stable facility to host crypto mining activities without having to incur substantial capital expenditure or recurring cash outflow. Under this asset-light model, the Group will obtain a share of the net proceeds of digital assets being mined, with the crypto mining activities focused on Bitcoin (“BTC”) at the initial phase.
Since January 2022, the Group’s mining operation is smooth and stable within its converted facilities (reference pictures can be found below within the press release), despite the tightened border controls between Singapore and Malaysia. With a total of three such agreements for crypto mining activities and the reopening of borders between Singapore and Malaysia from 1 April 2022, the Group aims to target new opportunities with new business partners to utilise top-end crypto mining rigs to expand and scale up its crypto mining operations.
Dato’ Colin Tan, Executive Chairman and Managing Director of Hatten Land, said: “Since we started crypto mining operations in January 2022, we are now more well-equipped and better positioned than ever to expand our operations.
Large scale, high-quality, low-cost crypto mining facilities are highly sought-after in Malaysia. With our growing track record, we aim to build on this momentum to secure new partnerships and expand into one of the leading cryptocurrency mining service providers in Asia.”
Separately, in light of the full resumption of pre-covid land transportation and further easing of other modes of transportation between Singapore and Malaysia, from 1 April 2022, the Group will accept major cryptocurrencies, through a registered licensed partner, for property sale, retail and hospitality transactions under its property portfolio. With key properties primarily in Melaka, one of Asia’s iconic tourist destinations, Hatten Land’s current development portfolio comprises five integrated mixed-use development projects and retail malls that have a combined built-up area of 6 million square feet.
According to a report by World Economic Forum, the advent of cryptocurrencies has led to the creation and operation of new global, decentralized networks that have been used by over 100 million people across the world to transfer trillions of dollars of value.
Dato’ Colin Tan added: “With the popularity of cryptocurrencies, there is a growing trend by consumers to use it as a payment method for a range of products and services, both online and offline.
Together with the rise of the digital economy in Asia, there are strong incentives for us to integrate cryptocurrencies in our business activities to access new demographic groups and liquidity pools.”