To enable this transition, the company signed a binding investment term sheet with several former board directors of ASIC hardware manufacturer Canaan, including Sun Qifeng, Zhang Li, and Kong Jianping, a former Co-Chairman of Canaan Inc.
The outline of the term sheet details that The9 will issue 8,108,100 Class A ordinary shares and 207,891,900 warrants to the former Canaan directors. They will then help the firm develop its block reward mining businesses, including sourcing blockchain mining hardware.
“We will assist The9 to purchase cryptocurrencies mining machines including but not limited to AvalonMiners, AntMiners, WhatsMiners, and Ipollo miners, and build up a professional team to focus on cryptocurrencies business,” Kong said in the SEC filing.
If pre-agreed conditions are realized, and investors exercise all warrants, The9 expects to have raised $34 million in either its preferred choice of USD or digital currencies (including BTC). The9 will set up a wholly owned subsidiary, named NBTC Limited, to spearhead the new block reward mining business.
Jun Zhu, chairman and CEO of The9, conveyed the firm’s intentions to become one of the world’s largest block reward mining companies in terms of hash rate. They plan to build a server fleet of hardware devices that contributes 8% to