SOS Limited (NYSE: SOS) lost 6.34% after announcing it signed a joint venture deal with New Jersey-based Niagara Development LLC. The joint venture, FD LLC, will be based in Niagara, Wisconsin, and will conduct crypto mining operations and build a globally standardized Digital Super Computing Custody Operation Centre.
Niagara Development To provide JV with renewable power.
According to the agreement terms, Niagara Development will provide 150MW of power, including renewable energy, and construct the Digital Super Computing Custody Operation Centre. On its part, SOS will be in charge of the joint venture’s operations, funding, and management. It is vital to note that SOS is dedicated to following its blockchain approach and aspires to be an industry leader in terms of sustainability.
SOS has begun relocating its bitcoin mining activities to the US in reaction to changes in the laws and regulations governing blockchain operations in China. However, most of its China operations, such as its phone center, Ethereum mining operations, and insurance, will be unaffected and fully functional.
SOS exploring acquisition options in North America
Yandai Wang, SOS Chairman, said that the company’s development of complete blockchain offerings for digital banking, digital trade, and other industries continues to increase. Wang said that the company decided to obtain a long-term power supply following blockchain activities expansion into North America. He said they are looking forward to the joint venture’s effective functioning. SOS is looking at Niagara Development, Park Falls Management LLC, and Sherman Development LLC as potential acquisition targets. The company is optimistic about its strategic expansion in North America, even though SOS doesn’t have a firm agreement for such a purchase at this time.
SOS is an upcoming marketing and solutions provider based on big data and blockchain in China with over 20 million members. In July last year, the company moved its headquarters to Qingdao West Coast from the Gui’an area.