Catalist-listed Hatten Land has, on Sept 29, entered into an agreement with Frontier Digital Asset Management to jointly operate at least 1,000 cryptocurrency mining rigs within the group’s properties in Malaysia.
Frontier is a fast-growing digital asset management company that has successfully secured investments from investors in Mainland China, Hong Kong and Asean regions. The company, which was founded by Bryan Zhou, along with two other National University of Singapore (NUS) business undergraduates, aims to provide easier access for retail and institutional miners around the globe.
The agreement was signed by Hatten Land’s subsidiary Hatten Technology.
The agreement follows the signing of the memorandum of understanding (MOU) with Mainboard-listed Singapore Myanmar Investco on Sept 16.
In total, the group will see a total of 3,000 cryptomining rigs to be installed at its properties in Melaka, Malaysia.
See: 'Unusual volume movements' in Hatten Land's shares trigger SGX query
The agreement will leverage Hatten Land’s mall space in Melaka and lower energy costs in Malaysia to mine Bitcoin initially. Alternative coins will be considered in future.
Hatten Land and the Hatten Group conglomerate operates six retail malls with a combined floor space of over 6 million sqft in the city. It also owns four hotels there.
Under the agreement, Frontier will install, operate, manage and maintain at least 1,000 cryptomining machines, which will operate 24 hours a day, in Hatten Land’s Melaka properties.
Hatten Technology will obtain a share of the net proceeds.
Frontier will also conduct cryptomining activities solely with Hatten Technology in Malaysia. Both parties have an exclusive right-of-first-refusal to participate in any business opportunities to carry out any cryptomining activities outside Melaka, but within Malaysia.
“The definitive agreement with Frontier underscores our commitment to pivot to ‘green’ cryptomining activities in Melaka. We will leverage on Frontier’s proven expertise to develop cryptomining hubs starting in Melaka,” says Dato’ Colin Tan, executive chairman and managing director of Hatten Land.
“Hatten Land is re-purposing its extensive mall footprint as part of a broader strategy that includes blockchain activities, online-to-offline commerce and renewable energy. We believe this agreement will augur the transformation of Hatten Land’s assets into a hub for blockchain and other digital activities that will contribute to the growth and transformation of Melaka,” he adds.
Shares in Hatten Land closed 0.6 cent higher or 10.91% up at 6.1 cents on Sept 28.
Photo: Hatten Land
