VCV Power Sigma, Inc., affiliated companies that together form a fast-growing and sustainable U.S.-based Bitcoin mining business, and Fortune Rise Acquisition Corporation (NASDAQ: FRLAU, FRLA and FRLAW) (“Fortune Rise”), a special purpose acquisition corporation sponsored by Fortune Rise Sponsor LLC, announced today that they have entered into a definitive merger agreement pursuant to which Fortune Rise will acquire the business of the Companies and the Companies will continue as surviving, directly wholly-owned subsidiaries of the combined company (the “Business Combination”).
Upon completion of the Business Combination, the combined company is expected to operate under the name “VCV Digital Technology, Inc.” and remain listed on the Nasdaq stock market under the new ticker symbol “XVC” with respect to its common stock.
VCV Digital Technology Highlights
VCV Digital Technology develops digital asset mining solutions and services that aim to rely on renewable energy for Blockchain/Web3 computing infrastructure deployment. With expected strong power sourcing capability – up to 1,000MW of hosting capacity in various stages of development deliverable from its affiliate, VCV Digital Technology management believes that the Companies’ self-mining, leased mining and managed mining businesses are well-positioned for rapid growth. In addition, VCV Digital Technology management believes that the Companies’ existing relationships with manufacturers, distributors and logistics providers throughout the world will provide the combined company with a competitive advantage in accessing quality miner supplies.
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VCV Digital Technology existing mining operations are 100% U.S.-based. VCV Digital Technology management has a deeply rooted investment banking and finance background with an extensive network of lenders and investors. VCV Digital Technology management has successfully closed multiple miner-backed financings and anticipates tapping into its broad lender network to finance the acquisition of mining equipment. As a result of these factors, VCV Digital Technology has been able to scale its business rapidly and Sigma generated $5.2 million in net income in fiscal 2021. U.S.-based crypto mining companies have directly benefited from China’s June 2022 ban on domestic crypto mining, as the U.S. share of global Bitcoin mining computing power has risen from 4.1% in September 2019 to 35.4% as of August 2021, ranking first worldwide, according to the Cambridge Centre for Alternative Finance. VCV Digital Technology management expects the positive market dynamics to continue and further fuel VCV Digital Technology’s growth in the digital asset mining market.
VCV Digital Technology and Fortune Rise Commentary
Jerry Tang, Co-Founder and CEO of VCV Digital Technology, remarked: “VCV Digital Technology’s core mission is to build sustainable computing infrastructure. We are excited about this opportunity to list on Nasdaq, as it will allow us access to a much larger pool of capital and increase our global profile. We believe that the ability to utilize such additional capital resources will facilitate and accelerate our progress in becoming a leader in blockchain computing infrastructure. At our core, we believe blockchain/Web3 to be one of the most important and revolutionary technologies of the 21st century and are excited to provide the underlying computing infrastructure in an environmentally friendly way.”
Lei Huang, CEO and Director of Fortune Rise, commented: “We are truly excited about the merger with VCV Digital Technology, which we believe will enable us to bring innovative digital asset mining solutions to the public market. We believe the future prospects of the combined company will provide great value to our stockholders. We look forward to continuing to work with VCV Digital Technology to bring this Business Combination to fruition.”