Mining Power Group Acquires Northway Mining Cryptocurrency Data Machines And Operations
Mining Power Group, Inc. has announced its acquisition of the majority ownership interest of upstate New York technology company, Northway Mining, LLC, which offers highly specialized data center hosting services for thousands of cryptomining machines.
Northway, which will become a subsidiary of the Company, presently has revenues from its existing clients and also from an ever-increasing number of new clients.
The purchased property has onsite access to approximately 300 Megawatts of electricity at very affordable rates contracted by Northway, which provides Northway with a significant competitive advantage on which to aggressively seek new and large client contracts. The cost of electricity being a significant cost component in the operation of any cryptomining machine.
Included as part of the acquisition are real estate assets of substantial value from the purchase of the buildings in which Northway operates and a future building into which it will expand. In addition, included are 30 acres of surrounding flat land that will be used for future expansion of Northway as well as for the placement of industrial containers to house 1000's of additional mining machines for clients.
Under the terms of the transaction, Northway will maintain its current management and the company will invest funds for the expansion of its facilities. Additional details of the pending transaction were not disclosed but will be included in an upcoming 8K filing.
Separately, the company is in negotiations for a similar purchase of a majority interest in an unrelated privately-held company involved in the development of products for the cryptomining industry. Results of the negotiations will be announced at a later date.
Dror Svorai President and CEO, Mining Power Group, Inc. said this is something that they have been working on for a while and are so glad to finally complete this transaction. They have not only entered the data center market but have done it in a big way that allows them to immediately begin a rapid ramp up of revenues.
Existing clients can readily add machines because of their immense capacity, which is a key capability that they offer their clients. Their immediate ability to expand their facilities and the significant operational cost savings can offer their clients due to low cost of electricity, provides them with an affordable way to thrive and profit.
Michael Miranda, President of Northway Mining stated that their whole team is excited to be a part of Mining Power Group and a part of a public company which will give the company the support it needs to keep pace with the rapidly growing business. The increasing demands from their existing client base, coupled with many new client additions, required that they rapidly accelerate their expansion to meet the needs of both.
With their highly experienced and qualified staff and Mining Power Groups' support, they will be able to upgrade their facilities and aggressively take advantage of this rapidly growing market.
Meanwhile, Mining Power Group, Inc. was originally formed as Rich Cigars to distribute, brand and market tobacco products. Following a change of control in November 2017, it changed its name and shifted its focus to become a holding company for new subsidiary operations serving the cryptomining industry. The Company trades under the symbol (“RCGR”) and is a fully reporting SEC company listed on the OTC market.