Noncurrent assets up 43.9%, diversifying revenue with mining project

Operations in Oman, Paraguay to begin as early as this week

Lee Sung-hoon, CEO of Bitplanet. (Bitplanet)
Lee Sung-hoon, CEO of Bitplanet. (Bitplanet)

Bitplanet has completed the transfer of 1,204 bitcoin mining rigs and is set to launch full-scale mining operations in Oman and Paraguay.

Bitplanet said Wednesday it had completed the transfer procedures for the bitcoin mining equipment under a contract signed in June. The total transfer value came to $9,999,228.

The equipment secured includes 454 units of Bitmain's S21 XP Hydro and 750 units of the S21e XP Hydro, totaling 1,204 rigs. Each unit has a maximum hash rate of 473 terahashes per second and a power efficiency of about 12 to 13 joules per terahash.

The mining rigs have been deployed to sites in Oman, in the Middle East, and Paraguay, in South America, both regions with low electricity costs. Bitplanet plans to run the equipment through a combination of outsourced operation and joint venture arrangements, aiming to mine at least 7 BTC a month, or more than 84 BTC a year. The bitcoin mined will be recognized as sales on the company's books.

With the acquisition, Bitplanet's noncurrent assets rose to about 62.3 billion won ($46.5 million), up 43.9 percent from before the mining rig transfer. Total assets climbed 14.6 percent to about 72.8 billion won.

The transfer process was completed about three months after Bitplanet disclosed its decision to acquire the equipment in June. Bitplanet said the deal involved multiple overseas counterparties and foreign exchange settlement procedures for the equipment purchase and financing, requiring the company to review the transaction structure and related procedures with accounting, legal and foreign exchange advisers.

Bitplanet plans to diversify its revenue by adding bitcoin mining to its existing system integration business. The company also intends to apply the experience it gains from managing power procurement and operating rates for the mining equipment to its AI data center project.

"With few domestic precedents to draw on, we reviewed everything from the contract terms to accounting treatment, disclosure and foreign exchange procedures with legal and accounting advisers," said Lee Sung-hoon, CEO of Bitplanet. "Now that we have completed the related procedures, we will prove ourselves through stable equipment operation and tangible operating results."

Bitplanet plans to bring the acquired mining rigs into full operation as early as Friday, and by sometime next week at the latest.


kyoung@heraldcorp.com