Hatten Land inks deal to operate 1,000 crypto mining rigs in Malaysia

The rigs will initially mine Bitcoin, with alternative coins to be considered in the future. PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - A subsidiary of Hatten Land has signed a definitive agreement with Singapore's Frontier Digital Asset Management to share proceeds from jointly operating at least 1,000 cryptocurrency mining rigs at the group's properties in Malaysia.

In a bourse filing on Wednesday (Sept 29), the property developer said the rigs, which will be built in phases from the fourth quarter of this year, would repurpose Hatten Land's existing retail mall infrastructure in Melaka for digital activities such as crypto mining and e-commerce.

Frontier is a digital asset management technology company that oversees crypto mining assets for institutions and retail investors.

Hatten Land shares jumped on the news with the stock up 0.5 cent, or 8.2 per cent, at 6.6 cents as at 10.32am.

Under the terms of agreement, Frontier will install, operate, manage and maintain at least 1,000 crypto mining machines at properties owned or managed by Hatten Land in Melaka.

The rigs will operate 24 hours each day, including public holidays and weekends. It will initially mine Bitcoin, with alternative coins to be considered in the future.

The latest agreement will bring the total number of crypto mining rigs to be installed at Hatten Land's properties in Melaka to 3,000. This includes the memorandum of understanding signed recently with mainboard-listed Singapore Myanmar Investco (SMI) to procure up to 2,000 rigs. SMI plans to install and operate these rigs on Hatten Land's Melaka properties from December 2021.

Mr Colin Tan, Hatten Land's executive chairman and managing director, said the group's partnership with Frontier underscores Hatten Land's commitment to pivot to "green" crypto mining activities in Melaka.

"We will leverage Frontier's proven expertise to develop crypto mining hubs starting in Melaka. Hatten Land is repurposing its extensive mall footprint as part of a broader strategy that includes blockchain activities, online-to-offline commerce and renewable energy," said Mr Tan.

"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."

Hatten Land previously signed a strategic partnership agreement with Bursa-listed Nestcon Berhad to install solar panels on the roofs of some of its properties in Melaka. The subsidiaries of both entities will set up a joint venture or consortium with other partners to install these solar panels.

Installing solar panels on these malls will further lower energy costs and turn the footprint of malls into a hub for energy-efficient or "green" crypto mining, the group added in its latest announcement.

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