XI’AN, CHINA - China Green Agriculture, Inc. (NYSE: CGA), a producer of compound fertilizers in China, has completed the acquisition of Lonestar Dream Inc., a company engaged in the bitcoin mining sector. This acquisition, initially announced on December 27, 2023, for $49 million, marks CGA's strategic expansion into the cryptocurrency industry, complementing its existing agriculture business.
The acquisition is a key component of CGA's dual-business development strategy, formulated in 2021 to diversify its operations. Lonestar Dream, established in September 2021, has been developing its presence in the cryptocurrency realm, securing a 600 Megawatt power contract and launching the first phase of 100 MW in August 2022. The company aims to bring an additional 500 MW online by 2026.
Lonestar Dream's in-house developed immersion cooling system for bitcoin mining, which is pending a U.S. patent, underscores its commitment to innovation and efficiency. In addition to cryptocurrency ventures, Lonestar Dream is also exploring the energy sector with plans to establish its first Energy Industrial Park by the end of 2024.
The park will focus on integrating energy infrastructure with cryptocurrency mining and expanding into renewable energy sources like battery energy storage systems and solar energy.
CGA's Co-Chief Executive Officer, Mr. Zhibiao Pan, who is also the sole shareholder of Lonestar Dream, expressed optimism about the acquisition, highlighting the potential for growth in the digital and energy sectors. Mr. Zhuoyu Li, Chairman and CEO of CGA, pointed to Lonestar Dream's management, product pipeline, and customer base as assets that will propel CGA's expansion in the cryptocurrency industry.
The funding for the acquisition has been arranged in three installments, with the shares of Lonestar Dream already transferred to CGA. Detailed information on the transaction can be found in the company's Form 8-K filed with the Securities and Exchange Commission.
The integration of cryptocurrency and energy sectors through this acquisition reflects CGA's strategic approach to leverage emerging technologies for long-term stakeholder value. The company has been active in the digital asset mining space since 2023 through its subsidiary, Antaeus Tech Inc., located in Delaware and Texas.
This article is based on a press release statement from China Green Agriculture, Inc.
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