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Message: Aquarius AI Inc. Announces Acquisition of Latest Generation Bitcoin Mining Rigs
Vancouver, British Columbia--(Newsfile Corp. - November 25, 2021) - Aquarius AI Inc. (AQUA: CSE) ("AQUA" or the "Company"), is pleased to announce that it has purchased 100 Bitmain S19 Pro 100 TH/s mining rigs ("Rigs") and has further entered into a non-binding letter of intent with Compass Mining Inc ("Compass") for the supply and hosting of an additional 1,000 Rigs.
Owen Sagness, Director of Operations at AQUA states, "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". He further added, "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."
The Company purchased the initial batch of 100 Rigs for USD$970,030, which it paid for in cash. The initial 100 Rigs 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 PH/s.
The additional 1,000 Rigs are anticipated to be delivered and operational during Q2 2022. When fully operational, the Rigs are expected to generate an aggregate of 100 PH/S. When combined together, the Company anticipates an overall hashrate of 110 PH/s and utilizing just under 3.5 MW of primarily carbon neutral power.
The Company intends to finance the purchase of the 1,000 Rigs though debt financing and, has entered into a non-binding term sheet ("Term Sheet") setting out potential terms for a lending arrangement (the "Loan") with Invictus Enterprises Inc ("Invictus"), a Canadian based investment management company. Pursuant to the Term Sheet, AQUA may borrow up to $10,000,000 from Invictus for the purchase of additional Rigs plus related hosting and power costs, with an anticipated repayment term of 24 months at an interest rate of 8% per annum, with initial payments being deferred until the mining rigs are online and hashing. The Loan is subject to further due diligence to be conducted by Invictus and other conditions to closing. Invictus recently became a 10% shareholder of AQUA during its private placement previously announced on November 9, 2021.
Owen Sagness, Director of Operations at AQUA also stated, "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". He further added, "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."
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