Mining Power Group, Inc., (the “Company” or “RCGR”), announced today that it acquired the majority ownership interest of upstate New York technology company, Northway Mining, LLC, (“Northway”) 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.
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.
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.
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. stated, “This is something that we had been working on for a while and we are so glad to finally complete this transaction. We have not only entered the data center market but we have done it in a big way that allows us to immediately begin a rapid ramp up of revenues. Existing clients can readily add machines because of our immense capacity, which is a key capability that we offer our clients. Our immediate ability to expand our facilities and the significant operational cost savings we can offer our clients due to our low cost of electricity, provides them with an affordable way to thrive and profit.”
Michael Miranda, President of Northway Mining stated: “Our whole team is excited to be a part of Mining Power Group and a part of a public company which will give us the support we need to keep pace with our rapidly growing business. The increasing demands from our existing client base, coupled with our many new client additions, required that we rapidly accelerate our expansion to meet the needs of both. With our highly experienced and qualified staff and Mining Power Groups’ support, we will be able to upgrade our facilities and aggressively take advantage of this rapidly growing market.”
Photo Credits: Mining Power Group Inc