Midland-based Big Digital Energy, a technology company that designs, builds, and operates digital infrastructure platforms, recently entered into a strategic colocation agreement with an affiliate of the Endeavor Group.
Endeavor will purchase and deliver approximately 25,000 mining computers while Big Digital will provide approximately 75 megawatts of compute capacity. The companies will operate under a 50 percent/50 percent profit-sharing arrangement. Big Digital will receive all cash proceeds from miners. Endeavor will receive a mix of Big Digital common stock and warrants to purchase common stock.
The agreement provides Big Digital with improved cash flow.
“This agreement demonstrates how the new management team at Big Digital is aggressively working to unearth new revenue streams and maximize the utility of our assets,” Phil Stanley, Big Digital CEO, said. “By leveraging our existing infrastructure and partnering with a well-capitalized counterparty, we’re able to rapidly bring incremental capacity online in a capital-efficient manner. This is the first of many transactions we expect to undertake as we focus on accelerating revenue growth, expanding our operational footprint, enhancing overall profitability, and creating value for our shareholders.”
Big Digital Energy was formerly known as Mawson Infrastructure Group. Some members of the company’s management team are part of Endeavor.