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 subsidiary of Trend Discovery Holdings LLC (“Trend”) entered into an agreement on September 3, 2021, to secure 12 MW (“megawatts”) of available electric capacity for Bitstream’s mining operation. Specific terms of the agreement will be disclosed at a future date. Bitstream and its strategic power consultant are working with the utility to upgrade the utility’s substation in order to expand the available capacity up to 50 MW.
Ecoark previously announced that Bitstream would be developing a 6 MW cryptocurrency mining operation in Texas. Brad Hoagland, CFA, Chief Financial Officer of Ecoark commented, “We are proud to have upheld and outperformed our commitment by securing power capacity within 30-days, while also doubling the target capacity of our mining operation from 6 MW to 12 MW and initiating an expansion to 50 MW. We remain confident that Bitstream’s projected high margin business model will fulfill one of the key business lines within Trend for its recently announced and upcoming spin-off transaction into a pure play FinTech company.”
Bitstream has also secured mining equipment with delivery anticipated within the targeted operational timeline. Bitstream expects to participate in the Electric Reliability Council of Texas’ (ERCOT) responsive reserve market as part of our Environmental, Social, and Governance (“ESG”) strategy by relinquishing its power back to the Texas grid as warranted. “We plan to utilize our operational load flexibility to participate in the ERCOT market and provide ERCOT with more tools to help stabilize the grid when needed”, stated M. Britt Swann, President of Bitstream.
Bitstream is expecting the 12 MW mining site to be fully operational and yielding significant coin generation by January 2022 with anticipated monthly revenues of $4.4 million1 including payments for participation in ERCOT Demand Response programs. The fully developed 50 MW site is expected to be completed by December 2022. Brad Hoagland, CFA added, “we plan to mine a diversified basket of large-cap cryptocurrencies with the highest miner reward-to-price ratio. We will sell sufficient coins to cover Bitstream’s monthly operating costs, while utilizing 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 breakthrough approach to quality management of fresh food, is specifically designed to help substantially reduce the $161 billion amount of food loss the U.S. experiences each year. Banner Midstream is engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Texas, Louisiana, and Mississippi. Banner Midstream also provides transportation and logistics services and procures and finances equipment to oilfield transportation services contractors. In addition to leading our new business opportunity, Trend invests in a select number of early-stage startups each year as part of the fund’s Venture Capital strategy; we are open-minded investors with a founder-first mentality. Trend Discovery LP has an audited track record of uncorrelated outperformance of the S&P 500 since inception.
ZEST FRESH™ and Zest Labs™ are 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 related to the proposed development of a cryptocurrency mining operation in Texas and its expected future capacity and further expansion, the expected focus of, and revenues from, our future mining operations and the anticipated use of digital assets, our plans regarding using the future mining operation to alleviate power grid imbalances using our power consultant’s monitoring capabilities, 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 concerning future events. Such 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 outside management’s control. Important factors that could cause actual results to differ from those in the forward-looking statements include our ability to execute a binding agreements pursuant to the letter of intent in a timely manner or at all, our ability to procure the necessary high speed computers needed for cryptocurrency mining in a timely manner, including due to the international semiconductor shortage, our ability to pay the costs related to the data center development, including without limitation the build out of the medium voltage electrical distribution infrastructure, our reliance on a third party providers in connection with the operation of the mining facility, the utility’s consent to the 50MW expansion, our limited experience in commercial scale cryptocurrency mining, intense competition in the cryptocurrency mining market, potential future legislation or regulatory initiative limiting the use of digital assets as a medium of exchange, significant volatility of 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. Additional factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible 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 may be required by law.
Marc Silverberg, ICR
Brian McBride, Ecoark
1 Subject to cryptocurrency volatility