Lion Signs Letter of Intent with New Full Rich to Invest in Tajikistan’s Digital Mining Project


Lion Group Holding Ltd. (“Lion” or “the Company”) (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services and developer of new growth products that include SPAC sponsorship, NFT, and metaverse-related initiatives, today announced it signed a letter of intent with Hong Kong New Full Rich Ltd. (“New Full Rich”). Under this investment agreement, the two parties will cooperate to construct and operate an encrypted digital currency mine project (“the Project”) in Tajikistan through Ganj Technology (the “Target Company”), a company owned by New Full Rich.

New Full Rich specializes in the construction, development and operation of overseas digital mines and digital mining business. The Target Company has received strong support from Tajikistan’s government, including the President’s Office and 12 government departments. The first phase of the Project will focus on a free trade economic zone, establishing a 150,000-load mining site that incorporates industry licenses, energy loads, electricity prices and other relevant operating conditions, in addition to signing a sole protection agreement with the free trade economic development zone. The first phase of construction for the digital mine infrastructure and power-on operation is expected to be completed in the first quarter of 2022, and the project’s annual profit is expected to be no less than US$25 million. In addition, the two groups will gradually promote the construction of a 300,000-load mine field for the second phase of the Project.

Accordant to the agreement, Lion Group will issue 5,000,000 shares to New Full Rich at a price of US$3.00 per share in exchange for 20% of the Target Company’s enlarged shares. Lion will work closely to execute the Project and expects to achieve profit sharing of US$5 million in 2022. In addition, Lion can exercise priority to purchase 10,000 WhatsMiner M series mining machines from New Full Rich with operational hashing power ranging from 60 to 62 terahashes per second. Upon installation and initial use of the mining machines, Lion expects to generate an estimate of approximately 3.38 BTC per day. According to the current price of cryptocurrency, daily income will be approximately US$220,000. After deducting 22% for electricity fees and subsequent machine maintenance costs, annual profit is expected to reach US$62 million with attractive return-on-investment in the long-term if operations go as expected.

Mr. Chunning (Wilson) Wang, CEO of Lion, commented: “Tajikistan has unique advantages in water resources, which is central to the development of the digital mining industry. Through this project with New Full Rich, Lion’s investment and operations in digital mining in Central Asia will create valuable achievements and mark another solid step for Lion in the global digital asset industry. As the era of the digital economy continues to expand, we believe there is huge growth potential in the cryptocurrency market. Following this trend and seizing the opportunity, Lion will accelerate development and innovation in the global digital asset field as we continue to create meaningful value for our shareholders.”