Derlin Holdings (HKEX: 01709) has taken a major stride into the cryptocurrency mining sector by signing a binding term sheet with Fortune Peak for the acquisition of 2,200 S21XP HYD Bitcoin mining machines, valued at US$21.8526 million. The machines are expected to generate a collective hash rate of approximately 1,040,600 TH/s.
To fund the purchase, Derlin will issue convertible bonds equivalent to the acquisition amount, set an initial conversion price of HKD 3.17 per share, and issue 40 million warrants. Additionally, up to 13.4425 million earn‑out shares may be granted if performance targets are met.
This move aligns with Derlin’s strategic push to diversify into digital assets and cryptocurrency infrastructure, aiming to bolster its exposure to Bitcoin mining and strengthen its position in the blockchain ecosystem. The company estimates that the machines will produce meaningful Bitcoin output over time, enhancing their balance sheet with self‑mined assets.
As part of its long-term vision, Derlin hopes to scale operations, capture greater hashrate output, and position itself as a notable player among listed mining firms. Key questions remain around deployment logistics, energy sourcing, and operational efficiency in turning this hardware acquisition into sustained revenue.
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