Arkon Energy Announces the Planned Listing of US Portfolio

HANNIBAL, Ohio, March 26, 2024 /PRNewswire/ -- Arkon Energy US Holdco LLC (previously Arkon Energy Ohio LLC) ("Arkon") announces that on 21 February 2024 it entered into a term sheet (the "Terms") relating to a potential transaction, including a business combination, with BM3EAC Corp. (the "Company"), a shell company incorporated under the laws of the Cayman Islands as an exempted company with limited liability and listed on Euronext Amsterdam, the regulated market operated by Euronext Amsterdam N.V. (the "Potential Business Combination").

This marks a transformative step for Arkon, as the consummation of this Potential Business Combination would result in the business becoming publicly listed on Europe's largest stock exchange.

Arkon is a Bitcoin data center infrastructure and mining business that buys, develops, and owns valuable data center infrastructure at the intersection of electricity and data processing at an industrial scale that helps power the trillion-dollar Bitcoin economy.

Arkon currently has 117 megawatts ("MW") of approved operating capacity across two data centers, including a 95MW flagship facility in Hannibal, Ohio, and a 22MW facility in Hopedale, Ohio. In addition, Arkon has binding agreements securing and entitling it to develop more sites in the United States, which would enable the Company to increase capacity by a further 190MW, bringing its total operating capacity to 307MW subject to successful funding and development of the sites. Arkon has signed a letter of intent to acquire an additional 100MW of further pipeline capacity within these same sites.

Arkon's business model is based on two verticals: (i) hosting third-party Bitcoin mining machines, and (ii) self-mining Bitcoin with its own machines. The business model is based on the ownership and management of the underlying infrastructure that powers the machines, designed to enable flexibility in balancing both verticals while taking advantage of the tailwinds in the Bitcoin ecosystem.

Josh Payne, Arkon's Founder and Chairman, stated, "On behalf of Arkon Energy, we are very excited to partner with BM3EAC on this potential transaction. The confluence of the upcoming block reward halving, the global shortage of near-term data center capacity and the significant increase in demand for low cost data center hosting creates the ideal conditions for those who already own a large portfolio of operating sites with substantial additional growth capacity in their portfolio's development pipeline. Arkon has spent the last two years consolidating the distressed market for high value, low power cost data center sites and infrastructure at attractive prices."

"Having now achieved significant economies of scale, we firmly believe that it is the right time to list our US portfolio and use that public platform to continue scaling the company's existing pipeline in Texas and Ohio."

While the Terms are generally indicative and non-binding on the parties, it does include certain binding terms including a 90-day mutual exclusivity period, during which the parties have agreed to work towards executing definitive agreements in respect of the Potential Business Combination. The Potential Business Combination is subject to certain pre-conditions including the completion of satisfactory due diligence by each party, respective board approvals, and completion of definitive agreements.

SOURCE Arkon Energy