- C2 Blockchain Inc. (OTC:CBLO) enters a $1 million agreement to acquire a 20% stake in Texas's McAllen Project.
- The facility offers an initial 10 MW capacity, expandable to 30 MW, focusing on blockchain, AI, and data processing.
- Expected completion of due diligence and final agreements within 30 business days.
C2 Blockchain Inc. (OTC:CBLO) has signed a Letter of Intent to acquire a 20% equity interest in the McAllen Project, a digital infrastructure facility owned by A.R.T. Digital Holdings (OTC:CGAC). The transaction, valued at $1 million, marks a strategic entry into the digital infrastructure sector.
The McAllen Project, located in Texas, currently operates with a 10-megawatt (MW) capacity which has the potential to expand to 30 MW. It is designed to support high-density compute applications such as blockchain mining, AI workloads, and data processing. The facility capitalizes on the low-cost, reliable energy grid in Texas, with options for renewable energy, ensuring economic and sustainable operations.
Under the agreement terms, the acquisition will be structured as a direct equity purchase in the project's Special Purpose Vehicle (SPV). Payment can be made either as a lump sum or in multiple tranches over a 90-day period, depending on mutual agreements. The deal is contingent on completing due diligence and the execution of definitive agreements within 30 business days.
The McAllen Project generates revenue through a diversified model including proprietary compute operations, client hosting, and compute leasing. This revenue diversity provides exposure to both blockchain and AI demand curves, enhancing C2 Blockchain's growth strategy in the ever-evolving digital economy landscape.
C2 Blockchain's CEO, Levi Y. Jacobson, emphasized the strategic importance of the acquisition, highlighting the McAllen Project's potential to strengthen the company's presence in the blockchain and AI sectors. Logan William Rice, CFO of A.R.T. Digital Holdings Corp., expressed enthusiasm for the partnership, noting the shared commitment to scalable and sustainable digital infrastructure.
