Aquarius AI Inc. has purchased 100 Bitmain Antminer S19 Pro 100 Terahash per second Mining Rigs and further entered into a non-binding letter of intent with Compass Mining Inc. for the supply and hosting of an additional 1,000 Rigs.
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I’m Cassandra Bolinski for Investmentpitch Media
Aquarius AI Inc. has purchased 100 Bitmain Antminer S19 Pro 100 Terahash per second Mining Rigs and further entered into a non-binding letter of intent with Compass Mining Inc. for the supply and hosting of an additional 1,000 Rigs.
The initial batch of 100 Rigs, which were purchased for USD$970,030 in cash, are expected to be delivered in February 2022, and are anticipated to be live and generating Bitcoin during Q1 2022, at an expected aggregate of 10 Petahash per second.
The additional 1,000 Rigs are anticipated to be delivered and operational during Q2 2022, which when fully operational are expected to generate an aggregate of 100 Petahash per second.
When all 1,100 Rigs are operational, the company anticipates an overall hashrate of 110 Petahash per second, while utilizing just under 3.5 megawatts of primarily carbon neutral power.
Owen Sagness, Director of Operations, stated: "Compass' commitment to this partnership will bring best in class hosting capacity, management, and ASIC procurement services to bear and allow AQUA to scale the mining operation as quickly and efficiently as possible. Under the initial purchase agreement, AQUA has purchased $1,000,000 worth of next generation ASIC Bitcoin miners for hosting with Compass. Over the next few months, Compass Mining will supply and host a continuous flow of ASIC miners for AQUA in diversified locations."
Aquarius intends to finance the purchase of the 1,000 Rigs though debt financing and, has entered into a non-binding term sheet for a lending arrangement with Invictus Enterprises Inc, a Canadian based investment management company.
Pursuant to the Term Sheet, the company may borrow up to $10 million, which covers both the purchase of the additional Rigs plus related hosting and power costs, with an anticipated repayment term of 24 months at 8% per annum.
The initial payments will be deferred until the mining rigs are online and hashing.
The loan is subject to further due diligence by Invictus and other conditions prior to closing.
Invictus participated in the recent non-brokered private placement under which Aquarius raised approximately $3.6 million from the placement of approximately 36 million units priced at $0.10.
Invictus is now a 10% shareholder of Aquarius.
U.S. based Luxor Technologies, which is providing hashrate management and consulting services to the company also participated in the placement.
Alex Brammer, Vice President of Business Development at Luxor, stated: “At Luxor we look for opportunities to closely align ourselves with partners that we assess to be high-potential and strategically advantaged early in their growth curve. Aqua checks all the boxes; reputable operations with strong management, public market support, and the wherewithal to scale quickly and flexibly. We at Luxor are pleased to invest into AQUA to demonstrate our endorsement and support.”
Owen Sagness, Director of Operations, added: "We were keen to get AQUA hashing as soon as possible and were quick to secure an immediate 100 machines for a Q1 2022 go-live despite the well documented squeeze on available power in North America. Beyond that, we feel that 1,000 machines funded through our debt partner is a perfect solution to minimize shareholder dilution while making a statement that AQUA is serious about scaling mining operations quickly. Looking to the future, we are now in discussions to secure our pipeline infrastructure needs to ensure that we can continue our growth plans through 2022 and beyond."
The shares, which listed on the CSE on July 15th, are trading at $0.23.
For more information, please visit www.AquariusAI.ca, contact Owen Sagness, Director of Operations, at 604-265-7511 or email investors@AquariusAI.ca
I’m Cassandra Bolinski for Investmentpitch Media
