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Skychain to increase digital mining capacity by 400 per cent
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  • Skychain Technologies (SCT) has signed a binding term sheet with The9 Limited
  • The C$4M financing consists of a convertible note of $2 million and an equity private placement of $2 million
  • Skychain expects to begin construction activities in the coming months with completion by the end of this year
  • Skychain Technologies is a Vancouver-based company providing Blockchain Infrastructure services and power solutions
  • Skychain Technologies Inc. (SCT) opened trading at $0.91 per share

Skychain Technologies (SCT) has signed a binding term sheet for C$4 million in financing to construct and operate a 12 MW crypto hosting facility.

The facility will be located in Birtle, Manitoba.

The financing consists of a convertible note of $2 million and an equity private placement of $2 million.

The note bears an interest rate of 1% and is convertible into shares, with a conversion price of $0.85 per share and maturity of four years.

The private placement consists of 2,631,579 units at a price of $0.76 per unit. Each unit consists of one common share and one share purchase warrant, and each warrant entitles the holder to purchase an additional common share at $1.22 per share for a term of three years.

Financing is provided by The9 Limited. Under the agreement, The9 may use up to a maximum of 8 MW of operating capacity for its own miners at the project with a fixed-price hosting fee over a term of 10 years.

"The9 is an industry leader in crypto mining services," said Bill Zhang, SkyChain's President and CEO. "We look forward to working with them as a strategic partner, providing the Birtle Project with a long-term, high-performing and reliable mining operation."

Skychain expects to begin construction activities in the coming months with energization by the end of this year.

"With the lower power costs in Manitoba and a secure customer base from reliable partners such as The9, this commitment is expected to contribute significantly to the company's future profitability and growth," said Zhang.

Skychain Technologies is a Vancouver-based company providing Blockchain Infrastructure services and power solutions. 

Skychain Technologies Inc. (SCT) opened trading at $0.91 per share.

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