Hatten Land says new crypto mining tie-up has started operations ahead of schedule

SINGAPORE (THE BUSINESS TIMES) - Hatten Land's new partner has already delivered 80 per cent, or 40, of the pilot batch of 50 Bitmain Antminer S19J Pro crypto mining rigs originally due end-April.

In response to queries from the Singapore Exchange (SGX), Hatten Land on Tuesday (April 5) said the 40 pilot batch machines have since been installed and are now operating smoothly, mining Bitcoins continually and around the clock on an automated basis.

Its agreement with the new partner includes an option to deliver an additional 500 rigs within the year.

When asked by SGX to elaborate on the identity of its new partner, the group said its partner's name will remain undisclosed due to "commercial sensitivities".

It also said it was unable to disclose the breakdown of costs in acquiring and operating the new equipment through its latest partnership due to the "highly competitive business nature and commercial sensitivities".

However, Hatten Land did disclose that its new partner is a special purpose vehicle incorporated in Singapore and wholly owned by its owner and sole director, who is a permanent resident of the city state.

It said the new partner was introduced by one of the group's existing blockchain partners.

Hatten Land is entitled to a share of net proceeds after deducting operational and management expenses, as well as a share of mined cryptocurrencies due to the partner.

The group intends to recognise revenue from crypto mining hosting services.

It believes its crypto mining operations will provide a recurring and automated source of revenue - therefore leading to more stability in the group's financial performance.

"Cryptocurrencies are becoming mainstream, with more real-world applications as a means of commerce, making transactions more cost-efficient and facilitating new economic activities in the digital economy," said Hatten Land.

Regarding the group's recent decision to accept major cryptocurrency transactions under its property portfolio, Hatten said accepted cryptocurrencies include Bitcoin, Ethereum, and stablecoin Tether.

"These are the world's top three cryptocurrencies in terms of market capitalisation, valued at approximately US$1.38 trillion collectively. Tether being a stablecoin with a price pegged to US$1.00, has less than 3 per cent fluctuation against USD in the past 36 months. Other major cryptocurrencies might be acceptable and will be assessed on a case-by-case basis," it added.

The group said it is also in discussion with a registered licensed partner in Malaysia, while also working with a Monetary Authority of Singapore regulated partner to safeguard such transactions and its cryptocurrencies in the respective countries.

Shares of Hatten Land ended 0.1 cent, or 2.2 per cent, higher at 4.7 cents on Tuesday, before the news.