Ault Alliance Explores Paying Dividends in Bitcoin From its Michigan … – DBusiness
Ault Alliance in Nevada, a diversified holding company whose BitNile Inc. (BNI) subsidiary has a Bitcoin mining data center in Dowagiac, is exploring a pathway that will allow it to issue a special dividend payable in Bitcoin to stockholders.
The planned dividend would be paid from Bitcoin generated by Ault Alliance’s mining operation located southwest of Kalamazoo.
The company says it intends to collaborate with regulatory authorities, its transfer agent, and others, which may include a trusted custodian, to determine what is required to pay a special dividend in Bitcoin.
BNI recently reported that its Bitcoin mining facilities are currently operating at an operational hash rate of 2.1 exahashes per second, with approximately 9,000 of its Bitcoin miners at its Michigan data center and 10,000 Bitcoin miners that are being hosted through its strategic collaboration with Core Scientific Inc.
The annualized gross value of Bitcoin currently being mined utilizing BNI’s miners is more than $55 million, or approximately 1,800 Bitcoin, based on current market conditions, including a current trading price of Bitcoin at $30,400 and a mining difficulty of 50.65 trillion.
With the increasing popularity and adoption of cryptocurrencies, Ault Alliance says it recognizes the potential of Bitcoin as a valuable asset for its stockholders.
The idea of potentially issuing a Bitcoin dividend is aimed at providing a forward-thinking approach to stockholder value enhancement. By using its Bitcoin mining operations, Ault Alliance seeks to provide an alternative investment opportunity and potential long-term value appreciation for its stockholders.
The company also is exploring ways to educate stockholders who may not be familiar or comfortable with receiving a dividend in Bitcoin itself.
Ault Alliance would, with the intention of addressing the preferences of all its stockholders, accomplish this by offering its stockholders as of the ex-dividend date a choice of receiving actual Bitcoin or a cash payment equal to the dollar value of the Bitcoin as of such ex-dividend date.
“By exploring a possible Bitcoin dividend, we aim to stay at the forefront of technological advancements and provide additional value to our stockholders,” says Milton “Todd” Ault III, founder and executive chairman of Ault Alliance. “We believe that cryptocurrencies, especially Bitcoin, hold tremendous potential for the future, and we want our stockholders to benefit from this exciting opportunity.”
To ensure compliance with regulatory requirements and promote transparency, Ault Alliance will be working closely with relevant regulatory authorities throughout the process.
The company is committed to adhering to the standards of corporate governance and regulatory compliance in all its operations. At this time, the company has not declared a dividend and there can be no assurances that it will declare a dividend payable in Bitcoin or a Bitcoin-denominated cash payment, if at all.
The company has not yet determined what procedures would be required to permit stockholders to receive a dividend in Bitcoin, and even if the company is able to pay a special dividend in Bitcoin, there are no guarantees that all stockholders will be permitted by their local governmental bodies to receive the dividend in Bitcoin.
Ault Alliance notes that all estimates and other projections are subject to the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, the ability to build out and provide the necessary power for miners, and other factors that may impact the results of Bitcoin mining production or operations.
Editor: R.J. King
Associate Editor: Jake Bekemeyer