ONTARIO, Calif. - Nature's Miracle Holding Inc. (NASDAQ: NMHI), an agriculture technology firm, has announced the creation of NM Data Inc., a wholly-owned subsidiary aimed at developing Bitcoin mining facilities. NM Data has entered into an agreement to invest up to $3 million in Future Tech Incorporated, an Ohio-based technology company, to establish a Bitcoin mining and data center hosting facility in Stryker (NYSE:SYK), Ohio.
The investment grants NM Data a 51% ownership in Future Tech. The initial payment of $200,000 has been made, with the remaining $2.8 million to be provided within the next 12 months. The completion of the investment is conditional on Future Tech securing an Electricity Sales and Purchase Agreement with a designated supplier and entering a ten-year lease with an option to purchase indoor space for the facility.
James Li, Chairman and CEO of Nature's Miracle, expressed enthusiasm for the project, noting the rising importance of Bitcoin as an asset class and the expected growth of crypto mining in the U.S. under the incoming administration. He highlighted the collaboration with Future Tech since March to develop the business plan for the Stryker facility, which will have access to up to 50MW of electricity at competitive rates.
Nature's Miracle, known for providing equipment and services to the Controlled Environment Agriculture (CEA) industry, has recently expanded into electric vehicle services and now Bitcoin mining infrastructure with NM Data. Future Tech has experience in developing data centers and has previously completed a 10MW data center project.
This press release includes forward-looking statements regarding the future expectations and plans for Nature's Miracle's business ventures, which involve risks and uncertainties. The actual results may differ materially from those projected in the statements.
The information reported is based on a press release statement.
In other recent news, Nature's Miracle Holding Inc. has made significant financial and strategic moves. The company converted $2 million of its debt into equity, involving key members of the management team and other debt holders. The debt-to-equity conversion agreements were made with several parties, including Visiontech Group, Inc., Uninet Global Inc., and executives Tie (James) Li and Zhiyi Zhang.
Nature's Miracle also implemented a one-for-thirty reverse stock split in response to a delisting notice from The Nasdaq Stock Market due to non-compliance with minimum bid price requirements. Furthermore, the company announced the terms of 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. Additionally, the company entered into several agreements for convertible promissory notes and 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, the company faces potential Nasdaq delisting due to non-compliance with market value requirements and plans to appeal this decision. In other developments, the company's Chief Operating Officer, Darin Carpenter, transitioned to a consulting role, and an exclusive distribution agreement was entered with Vaighai Agro Products Ltd. for distributing Gro-Med Coco Coir Substrate products across the U.S. Plans for a merger with Agrify Corporation, however, have been mutually terminated.
InvestingPro Insights
As Nature's Miracle Holding Inc. (NASDAQ: NMHI) ventures into Bitcoin mining, investors should consider some key financial metrics and insights from InvestingPro. The company's revenue for the last twelve months as of Q3 2024 stood at $9.99 million, with a quarterly revenue growth of 13.46% in Q3 2024. This growth could potentially support the company's new Bitcoin mining initiative.
However, NMHI faces significant challenges. InvestingPro Tips highlight that the company suffers from weak gross profit margins, which is evident in the negative gross profit margin of -5.13% for the last twelve months. This suggests that the company's core business operations are currently unprofitable, making the diversification into Bitcoin mining a potentially risky move.
Another InvestingPro Tip indicates that NMHI's stock price has fallen significantly over the last year. This is reflected in the staggering one-year price total return of -99.29% as of the latest data. This substantial decline in stock value may raise concerns about the company's overall financial health and market perception as it embarks on this new venture.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context for NMHI's strategic shift into Bitcoin mining.
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