BitNile Holdings Announces Strategic Partnership and Investment in Ecoark Holdings
BitNile Holdings, a diversified holding company today announced a strategic partnership and investment into Ecoark Holdings, Inc. BitNile’s subsidiary, Digital Power Lending, LLC, has agreed to purchase $12,000,000 of a new series of convertible preferred stock of Ecoark, which will be paid no later than June 29, 2022.
Pursuant to a mutually agreed upon use of proceeds, Ecoark intends to deploy significant proceeds via its subsidiary White River towards an oil drilling program across its cumulative 30,000 acres of active mineral leases at both shallow, intermediate, and deep levels. Ecoark will also deploy additional proceeds via its subsidiary Agora Digital to provide BitNile with up to 78 megawatts (“MW”) of power within the State of Texas for digital asset mining capacity, subject to BitNile proceeding with this facility after having conducted the requisite due diligence. The Agora Digital power capacity would, if the project proceeds as presently anticipated, expedite BitNile’s recently announced plans to significantly expand its Bitcoin mining production capacity, including growing its number of deployed Bitcoin miners to 20,600, representing an expected mining production capacity of approximately 2.24 exahashes per second. Further details and transaction documents will be provided via regulatory filings at a later date in accordance with Securities and Exchange Commission rules.
The Company’s Founder and Executive Chairman, Milton “Todd” Ault, III stated, “I’m very pleased to be partnering with Ecoark on this transaction and future business endeavors. I feel that the allocation of this $12,000,000 in capital to Ecoark will create significant shareholder value for both BitNile and Ecoark shareholders as White River attempts to extract its significant oil reserves from its mineral leased properties at historically high energy prices.” The Company’s Vice Chairman and CEO, William Horne, stated, “I feel that there are significant synergies between BitNile and Agora Digital where our cache of digital asset miners and Agora’s power capacity at extremely low power rates can expedite both businesses’ expansion and market share in the digital asset sector.”
Ecoark’s Founder, Chairman and CEO, Randy May, stated, “I am grateful to have met Todd Ault recently and to have worked so closely the last few weeks structuring this mutually beneficial transaction. I feel that there is a lot of untapped value within Ecoark across all of our subsidiaries that is not being currently realized by the market, and the BitNile investment and strategic partnership will greatly expedite the unlocking of that shareholder value.” Agora Digital’s CEO, Brad Hoagland, stated, “We are excited to be partnering with BitNile to further establish our company as the only power-centric digital asset company in the public market.”