XI'AN, CHINA, March 20, 2024 (GLOBE NEWSWIRE) -- China Green Agriculture, Inc. (NYSE: CGA) ("China Green Agriculture" or the "Company"), a company that mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provides a business update regarding the pending recent acquisition of Lonestar Dream Inc., a Delaware corporation (the "Lonestar Dream"), which focuses on cryptocurrency sector, particularly bitcoin mining. Mr. Zhibiao Pan is Co-Chief Executive Officer of the Company and is the sole shareholder of Lonestar Dream. The Company devised a dual-business development strategy in 2021, aimed at expanding into the cryptocurrency industry. Subsequently, the Company diligently executed the strategy, culminating in this significant acquisition.
CGA previously announced on December 27, 2023, that it had entered into a stock purchase agreement to acquire Lonestar Dream for an aggregate purchase price of $49 million. The funding for this acquisition is being disbursed in three installments, subject to customary closing conditions. The shares of Lonestar Dream, owned by Zhibiao Pan, have been transferred and registered under the name of CGA. For further details on the transaction, please refer to the Company's Form 8-K filed with the Securities and Exchange Commission ("SEC").
Lonestar Dream, founded in September 2021, has steadily grown its presence in the cryptocurrency realm. Having entered into a power lock-in contract in September 2021, securing an impressive 600 Megawatts ("MW") across two sites, Lonestar Dream has already energized the first phase, totaling 100 MW, in August 2022. With plans to deliver an additional 500 MW by 2026, Lonestar Dream has diversified its operations to include self-mining endeavors and hosting services for clients, leveraging cutting-edge mining technologies such as air cooling, hydro cooling, and its proprietary immersion cooling system. Notably, Lonestar Dream's immersion cooling system, developed in-house and with a pending patent in the United States, exemplifies its commitment to efficiency and innovation within the cryptocurrency mining sector.
Beyond its cryptocurrency ventures, Lonestar Dream has set its sights on future industrial expansion, recognizing the pivotal role of energy in powering emerging technologies like artificial intelligence. With plans to deploy more energy infrastructure, including the establishment of its first Energy Industrial Park by the end of 2024, Lonestar Dream is poised to lay the groundwork for the growth of cryptocurrencies and artificial intelligence. The proactive approach of Lonestar Dream is evident in its completion of over 30 site visits and extensive preliminary research in Texas. By strategically positioning itself in key regions and actively engaging in research and development, Lonestar Dream demonstrates its commitment to innovation and its readiness to lead the charge in shaping the future of energy and technology.
In developing the Energy Industrial Park, Lonestar Dream is pioneering the deployment of the power ancillary service market, encompassing energy retailing, dispatching, and hedging. By seamlessly integrating the power ancillary service market with cryptocurrency mining operations, it ensures efficiency and synergy between the two sectors.
Recognizing the significance of the renewable energy sector, Lonestar Dream has strategically included it in its expansion plans. It has already embarked on initial ventures into battery energy storage (BESS) and solar energy, laying the groundwork for future developments in this promising field.
Overall, Lonestar Dream's ambitious vision for industrial expansion, its strategic initiatives in energy infrastructure, integration of renewable energy, and commitment to innovation position it as a pioneering force in the convergence of energy and technology.
Zhibiao Pan, Co-Chief Executive Officer of CGA, expressed excitement about the strategic leap, stating, "The acquisition of Lonestar Dream represents a strategic milestone for China Green Agriculture, Inc. as we embark on our journey into the burgeoning cryptocurrency and energy sectors. Leveraging Lonestar Dream's expertise and infrastructure, we are poised to capitalize on the opportunities presented by the evolving digital landscape. With a steadfast commitment to innovation and sustainability, we aim to drive long-term value for our stakeholders while contributing to the advancement of the cryptocurrency and energy industries."
Mr. Zhuoyu Li, Chairman and CEO of CGA, emphasized the strategic significance of the acquisition, highlighting Lonestar Dream's experienced management team, extensive product pipeline, and large customer base as key assets propelling CGA's expansion in the cryptocurrency industry. He stated, "The acquisition of Lonestar Dream represents a significant step forward in CGA's business expansion. We are diligently working towards its completion and will provide timely updates to our shareholders and the broader public regarding the progress of this strategic initiative. I eagerly anticipate the growth opportunities this exciting new chapter brings for our Company."