Sino-Global Shipping America, Ltd. announced it plans to enter a bitcoin mining machine joint-venture (“JV”) with Highsharp, a company focused on block-chain technology, hardware, software and technology management, and cloud computing. The JV’s scope will encompass collaborative engineering, technical development and commercialization of a proprietary bitcoin mining machine under the name Thor, with exclusive rights covering design production, intellectual property, branding, marketing and sales. In connection with entry into the JV, Sino-Global will make a $10 million investment in the next month to fund the JV’s operations.
The JV will develop, and be exclusively licensed to manufacture, market and sell the Thor Bitcoin Mining Machine worldwide. The JV will own all intellectual property rights related to the Thor Bitcoin Mining Machine, including without limitation any modifications and improvements thereof. The JV plans to file a utility patent application with the United States Patent and Trademark Office pursuant to United States’ patent laws and the Patent Cooperation Treaty (“PCT”) for its planned Thor Bitcoin Mining Machine.
Sino-Global has agreed to invest an estimated $50 million over the next few years to support work performed in the U.S., including but not limited to design, testing and integration. Sino-Global expects to use existing assets as well as future capital raises to fund such investment. Highsharp will be the exclusive designated supplier of high-performance computing chips for the JV. A separate purchase agreement shall be signed between the JV and Highsharp. The quantity and all other details of the purchasing shall be determined based on actual business volume of the JV.
Mr. Lei Cao, Chief Executive Officer of Sino-Global, commented, “This is a major strategic development for Sino-Global with the potential for significant long-term financial benefit. The name we chose underscores our JV’s considerable combined resources, market knowledge and capacity to address unmet demand for high-quality, reliable digital mining machines. Recent crypto policy changes combined with ongoing global component shortages have served to remove valuable digital mining production capacity. We intend to fill that vacuum and plan to move aggressively as we build greater value for Sino-Global and all shareholders.”