ONTARIO - Nature's Miracle Holding Inc. (NASDAQ: NMHI), a company specializing in vertical farming technology, has made a strategic move to diversify its business by acquiring a majority stake in a Bitcoin mining company, J&Y Marigold Ltd., based in Toronto. The acquisition, which involves a 90% equity interest, was formalized through a Stock Purchase Agreement dated December 14, 2024, with a total investment of up to $5.32 million.
The transaction is structured in two phases, with the first phase expected to close in the first quarter of 2025 and the second phase in the subsequent quarter. Upon completion, Nature's Miracle will oversee a 14-megawatt Bitcoin mining facility, anticipated to be operational by the first half of 2025.
James Li, Chairman and CEO of Nature's Miracle, stated that this acquisition is a transformative step for the company, aiming to enhance its presence in the cryptocurrency industry. He highlighted the importance of Bitcoin mining for blockchain network security and stability and the economic opportunities it presents. According to InvestingPro data, the company currently faces financial challenges with negative EBITDA of $8.1 million and gross profit margins of -5.13%, making this diversification crucial for its future growth.
Nature's Miracle, traditionally an agriculture technology firm, has recently branched out into energy-dependent sectors, including electric vehicles and now, Bitcoin mining. This move aligns with the company's strategy to pursue diversified growth and explore new opportunities in emerging markets.
The global cryptocurrency market has seen significant growth, driven by wider adoption and increasing institutional interest. Nature's Miracle's entry into this market positions it to capitalize on this trend, leveraging its expertise in technology and infrastructure. InvestingPro subscribers have access to additional insights, including five key ProTips and comprehensive financial metrics that can help evaluate the potential impact of this strategic move on NMHI's valuation.
The information contained in this article is based on a press release statement from Nature's Miracle Holding Inc.
In other recent news, Nature's Miracle Holding Inc. has seen significant changes in its financial and operational structure. The vertical farming technology company recently appointed Daphne Y. Huang as Chief Financial Officer and George Yutuc as Chief Operating Officer, aiming to enhance long-term growth and operational efficiency.
The company has also made a substantial investment agreement with Future Tech Incorporated to construct a new data center and vertical farming facility. This move marks a significant expansion into the tech and sustainable agriculture sectors. Furthermore, Nature's Miracle has converted $2 million of its debt into equity, involving key management members and debt holders.
In an effort to meet Nasdaq's minimum bid price requirement, the company implemented a 1-for-30 reverse stock split. However, Nature's Miracle faces potential Nasdaq delisting due to non-compliance with market value requirements and plans to appeal this decision.
Nature's Miracle also announced a public offering aiming to raise approximately $3 million, managed by D. Boral (OTC:BOALY) Capital LLC. On the strategic front, the company rebranded its subsidiary, Hydroman Inc., to Hydroman Electric Corporation, signaling a shift towards the electric vehicle sector.
The company secured a $5.1 million sales agreement with What Rebates LLC and a $2.4 million purchase order from a major indoor grower in California for its Efinity brand grow lights. However, plans for a merger with Agrify Corporation have been mutually terminated. These are the recent developments in Nature's Miracle's business operations.
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