Melaka-based, Singapore-listed property developer Hatten Land Ltd appears to be desperately seeking ways to tide the group over during the pandemic, which has taken a toll on its property development.
Two weeks ago, it announced a partnership with construction services provider Nestcon Bhd to jointly explore and pursue business opportunities in the solar photovoltaic sector in Malaysia.
Last Wednesday, a deal was made between Hatten and Frontier Digital Asset Management Pte Ltd to jointly operate at least 1,000 crypto mining rigs within the former’s properties in Malaysia. Frontier currently operates more than 700 crypto mining rigs in Singapore.
In view of the strong rally in cryptocurrency prices this year, it is understandable why Hatten made such a move. The mining activity will leverage its existing infrastructure and lower energy costs in the country. The rigs will operate 24 hours a day, with a focus on Bitcoin mining initially.
Hatten will obtain a share of the net proceeds after deducting operational and management expenses and any share due to owners of the crypto mining rigs.
The negative perception towards cryptocurrencies is due to the environmental sustainability issue, as the mining activity involves high energy consumption.
Just recently, a syndicate stealing electricity to carry out Bitcoin mining activity was busted by Selangor police, which seized RM1.3 billion worth of mining machines.
On this matter, Hatten said it could lower the costs further by installing solar panels on its mall for green crypto mining purposes. Even so, it remains to be seen how its crypto mining plan will be implemented, as well as returns from the investment, subject to the fluctuation of cryptocurrency prices.
Though cryptocurrencies have become an alternative investing option, Chinese authorities, on the other hand, have intensified their crackdown on cryptocurrencies, imposing a blanket ban on all crypto-related transactions and mining. This is to root out so-called “illegal” cryptocurrency activity.