Hatten Land unit inks deal to operate at least 1,000 cryptocurrency mining rigs in Malaysia

Hatten Land unit inks deal to operate at least 1,000 cryptocurrency mining rigs in Malaysia
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KUALA LUMPUR (Sept 29): Singapore Exchange (SGX)’s Catalist-listed Hatten Land Ltd has signed an agreement with Frontier Digital Asset Management Pte Ltd to jointly operate at least 1,000 cryptocurrency mining (cryptomining) rigs within Hatten Group's properties in Malaysia.

In a statement on Wednesday, Hatten Land said cryptomining rigs will be installed starting from the fourth quarter of this year (4Q21) in phases under the strategic collaboration and management agreement between Hatten Land's wholly-owned subsidiary Hatten Technology (S) Pte Ltd (HTPL) and Singapore-based Frontier, which currently operates over 700 cryptomining rigs in Singapore.

This comes after Hatten Land recently announced that it would repurpose its retail malls in Melaka for digital activities such as cryptomining and e-commerce, with these activities leveraging existing infrastructure and lower energy costs in Malaysia. 

It added that such costs may be lowered further as Hatten Land instals solar panels on malls in an effort to turn its malls into hubs for energy-efficient or "green" cryptomining.

Under the terms of the agreement, Frontier will instal, operate, manage and maintain at least 1,000 cryptomining machines at properties owned or managed by Hatten Land in Melaka. The rigs will operate 24 hours each day, and will mine Bitcoin (BTC) initially, with alternative coins to be considered in the future.

Meanwhile, HTPL will obtain a share of the net proceeds after deducting operational and management expenses and any share due to owners of the cryptomining rigs.

In addition, Frontier will conduct cryptomining activities solely with HTPL in Melaka, and both parties also have an exclusive right-of-first-refusal to participate in any business opportunities to carry out any cryptomining activities outside Melaka but within Malaysia.

Hatten Land executive chairman and managing director Datuk Colin Tan said the definitive agreement with Frontier underscores the group’s commitment to pivoting to "green" cryptomining activities in Melaka. 

“We will leverage Frontier's proven expertise to develop cryptomining hubs, starting in Melaka. [In addition,] Hatten Land is repurposing its extensive mall footprint as part of a broader strategy that includes blockchain activities, online-to-offline commerce and renewable energy. 

“We believe this agreement will augur the transformation of Hatten Land's assets into hubs for blockchain and other digital activities that will contribute to the growth and transformation of Melaka,” he said.

According to Hatten Land, Frontier was founded by Bryan Zhou together with two other National University of Singapore (NUS) business undergraduates, and is on the mission to provide easier access for retail and institutional miners around the globe. 

“Aside from mining, they are especially focused on the blockchain ecosystem and digital asset generation. As a fast-growing digital asset management company, Frontier has successfully secured investments from investors in mainland China, Hong Kong and the ASEAN region. 

“With more plans for expansion, Frontier is looking to establish a strong foothold within the ASEAN region and contribute towards a more sustainable way of cryptocurrency mining,” said Hatten Land.

Hatten Land and its parent company Hatten Group conglomerate operate six retail malls with combined floor space of more than six million square feet in Melaka, where it also owns four hotels.

Hatten Land recently signed a memorandum of understanding (MoU) with SGX Mainboard-listed Singapore Myanmar Investco Ltd to procure up to 2,000 rigs. Combined with this agreement, Hatten Land will see a total of up to 3,000 rigs operating at its properties.

Last month, the group also signed a strategic partnership agreement with Bursa-listed Nestcon Bhd to instal solar panels on the roofs of some of its properties in Melaka. This initiative will enhance its sustainability efforts and help the group conduct "green" cryptomining activities in Melaka.

Surin Murugiah