The first phase is expected to become operational in approximately 90 days
SAN ANTONIO, Sept. 08, 2021 (GLOBE NEWSWIRE) — Ecoark Holdings, Inc. (“Ecoark”) (NASDAQ: ZEST), announced that its indirect wholly owned subsidiary Bitstream Mining LLC (“Bitstream”), a Wholly owned by Trend Discovery Holdings LLC (“Trend”) entered into an agreement on September 3, 2021 to secure 12 MW (“Megawatts”) of available power capacity for Bitstream mining. Specific terms of the agreement will be disclosed at a later date. Bitstream and its strategic energy consultant are working with the utility to upgrade the utility’s substation to expand available capacity up to 50 MW.
Ecoark previously announced that Bitstream would develop a 6MW cryptocurrency mining operation in Texas. Brad Hoagland, CFA, Ecoark’s Chief Financial Officer, said, “We are proud to have met and exceeded our commitment of securing electrical capacity within 30 days, while doubling our target mining capacity from 6 MW to 12 MW and launching an extension to 50 MW. We remain confident that Bitstream’s planned high-margin business model will fulfill one of Trend’s key business areas for its recently announced and upcoming spin-off transaction into a pure-play FinTech company.
Bitstream has also secured the mining equipment which is expected to be delivered within the targeted operational timelines. Bitstream plans to participate in the Electric Reliability Council of Texas (ERCOT) Reactive Reserve Market as part of our Environmental, Social and Governance (“ESG”) strategy by returning its electricity to the Texas grid where appropriate. “We plan to use our operational load flexibility to participate in the ERCOT marketplace and provide ERCOT with more tools to help stabilize the network when needed,” said Mr. Britt Swann, President of Bitstream.
Bitstream expects the 12 MW mining site to be fully operational and producing significant coin generation by January 2022 with expected monthly revenue of $4.4 million.1 including payments for participation in ERCOT Demand Response programs. The fully developed 50MW site is expected to be completed by December 2022. Brad Hoagland, CFA added, “We plan to mine a diverse basket of large-cap cryptocurrencies with the highest reward-to-price ratio. We will sell enough coins to cover Bitstream’s monthly operating costs, while using the remaining crypto for fiat transactions within our future planned and branded FinTech app and decentralized finance (“DeFi”) platform.
About Ecoark Holdings, Inc.
Founded in 2011, Ecoark is a diversified holding company. The Company has three wholly-owned subsidiaries: Zest Labs, Inc. (“Zest Labs”), Banner Midstream Corp (“Banner Midstream”) and Trend Discovery. Zest Labs offers the Zest Fresh™ solution, a revolutionary approach to fresh food quality management specifically designed to help dramatically reduce the $161 billion in food loss the United States experiences each year. Banner Midstream is engaged in oil and gas exploration, production and drilling operations on more than 30,000 cumulative acres of active mining claims in Texas, Louisiana and Mississippi. Banner Midstream also provides transportation and logistics services and purchases and finances equipment for oilfield transportation service contractors. In addition to leading our new business opportunity, Trend invests in a number of early-stage startups each year as part of the fund’s venture capital strategy; we are open-minded investors with a founder mentality. Trend Discovery LP has an audited history of uncorrelated outperformance of the S&P 500 since inception.
ZEST FRESH™ and Zest Labs™ are registered trademarks of Zest Labs, Inc.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the proposed development of a cryptocurrency mining operation in Texas and its expected future capacity and future expansion, the intended purpose of and revenues from our future mining operations and the intended use of digital assets, our plans regarding the use of the future mining operation to mitigate power grid imbalances using the monitoring capabilities of our energy consultant, and other statements that are not statements of historical fact. The words “believe”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “could”, “target”, “potential”, “is likely”, “will”, “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on management’s current expectations and beliefs, as well as a number of assumptions regarding future events. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, such as market and other conditions, many of which are beyond management’s control. Important factors that could cause actual results to differ from those set forth in the forward-looking statements include our ability to execute binding agreements pursuant to the letter of intent on a timely basis or at all, our ability to procure computers high speeds required for timely cryptocurrency mining, especially due to the international shortage of semiconductors, our ability to afford data center development costs, including but not limited to , the construction of the medium voltage electrical distribution infrastructure, our reliance on third party suppliers in connection with the operation of the mining facility, the utility’s consent to the 50 MW expansion, our limited experience in commercial-scale cryptocurrency mining, intense competition in the cryptocurrency mining market, future legislation potential tion or regulatory initiative limiting the use of digital assets as a medium of exchange, high volatility in the price of digital assets, and their potentially limited liquidity. Additional risks and uncertainties are identified and discussed in Ecoark’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended March 31, 2021 and Prospectus Supplement dated August 4, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Other factors or events that could cause our actual results to vary may arise from time to time and it is impossible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Marc Silverberg, ICR
Brian McBride, Ecoark
1 Subject to the volatility of cryptocurrencies