New Website to Be a Venue for Company Updates
AUSTIN, Texas, Aug. 27, 2024 /PRNewswire/ — Ionic Digital Inc., a leading innovator in the Bitcoin mining industry (“Ionic Digital” or the “Company”), today provided an update to its shareholders regarding various matters related to the Company.
Energization of Building 1 at Cedarvale
The Company is excited to announce that Building 1 at the Company’s Cedarvale facility in Ward County, Texas has been energized. The newly-constructed building is the first of four state-of-the-art 50 megawatt (“MW”) Bitcoin mining facilities planned for the site. It currently houses 15,552 Bitcoin miners, utilizing a combination of new and relocated machines to optimize performance and efficiency.
“We have eagerly awaited the energization of the first building at our Cedarvale site, and we could not be more pleased to be mining Bitcoin in Building 1,” said John Penver, the Company’s Interim Chief Executive Officer (“CEO”). “Now we not only have additional megawatts of power boosting our exahash, but we’ve achieved this while maintaining the liquidity levels we were established with at the time we began operating.”
As previously disclosed, once fully constructed and operational, the Cedarvale site is expected to house approximately 66,000 miners and be powered by 215 MW of electricity. The remaining three buildings, each of which will be identical in size and capacity to Building 1, are scheduled for energization in the coming months. The Cedarvale site will add to the Company’s existing capacity of approximately 7 exahash as of July 31, 2024. The Company’s Bitcoin mining operations from February 1 through July 31, 2024 have produced approximately 1,331.47 Bitcoin, bringing the Company’s total Bitcoin holdings as of the end of July to 1,891.68 Bitcoin.
New Website
Ionic Digital is also pleased to announce the launch of its new website at www.ionicdigital.com. Going forward, the Ionic Digital team will use the website to provide information to shareholders and other interested parties. Additionally, the website will serve as a venue for the Company to post regular updates on its business as well as certain operating and other metrics. Shareholders are encouraged to view the first video update from Interim CEO John Penver which will be posted today at @IonicDigital on X (formerly Twitter) and posted on the Company’s website later this week.
Amended and Restated Management Services Agreement with Hut 8
In its press release issued on August 8, 2024, the Company stated that it had “amended its managed services agreement with Hut 8 which, among other things, removed the liquidity deadline provision.” More specifically, on June 19, 2024, the Company and U.S. Data Management Group, LLC (“Hut 8”) entered into an Amended and Restated Management Services Agreement (the “A&R MSA”) that wholly replaced the original Management Services Agreement (the “MSA”). The MSA provided the Company with the right to terminate the MSA if the Company’s Board of Directors (the “Board”) reasonably determined by June 1, 2024 that it was unlikely the Company would be able to become a public company in a manner that satisfied the MSA’s requirements (the “Liquidity Deadline”). If the Company terminated the MSA for this reason, the Company would have had to pay Hut 8 a $20.4 million termination fee and reinstate the MSA if certain conditions existed post-termination.
Prior to the June 1st deadline, the Board exercised its termination right under the MSA. Hut 8 disputed the basis for the termination. In order to provide an opportunity to reach a resolution, the Company agreed to delay the effectiveness of the termination notice, and Hut 8 and the Company engaged in discussions to restructure the MSA to the satisfaction of both parties. This resulted in several improvements to the terms of the MSA for the benefit of the Company and its shareholders, including a greater than 25% reduction of ongoing management fees, the removal of the Liquidity Deadline and related termination provisions as the Company continues to pursue a public listing, and a new right to terminate the A&R MSA for convenience at any time for a termination fee which generally will be $22.5 million. A summary of the key terms of the A&R MSA will be posted today at @IonicDigital on X (formerly Twitter) and posted on the Company’s website later this week.
About Ionic Digital
Ionic Digital is a best-in-class Bitcoin miner and emerging innovator in energy monetization. With facilities across North America, Ionic expects to have the ability to deploy up to 12.7 exahash to the Bitcoin Network. For more information, visit ionicdigital.com and follow us on X at @IonicDigital.
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SOURCE Ionic Digital
