Shares of sports recruitment platform Signing Day Sports Inc. SGN surged in premarket on Monday after the company signed a non-binding letter of intent to acquire blockchAIn Digital Infrastructure.
Blockchain Digital Infrastructure is a data-hosting firm focused on cryptocurrency mining, artificial intelligence, and high-performance computing services.
Valued at approximately $215 million, the proposed deal will allocate 91.5% of the merged company’s equity to blockchAIn DI stakeholders. Signing Day Sports shareholders are expected to retain around 8.5%.
The deal involves an all-equity transaction in which Signing Day Sports would issue shares to acquire full ownership of blockchAIn DI.
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The companies expect the combined entity to list on the NYSE American upon the finalization of the merger.
Blockchain Digital Infrastructure will retain its current leadership and become a wholly-owned subsidiary of Signing Day Sports through a planned merger with a newly created subsidiary.
In 2024, blockchAIn DI recorded unaudited revenue of $26.8 million and net income totaling $4 million. The company currently operates a 40MW crypto mining facility in South Carolina, with the ability to scale to 50MW pending utility approvals.
Additionally, a 150MW data center in Texas is under development. The first 100MW will be used for internal crypto operations, and the remaining 50MW will be used for AI and HPC hosting services.
Leadership from both firms views the transaction as a way to capitalize on the rising demand for scalable, energy-efficient compute capacity in the U.S., especially amid increased focus on domestic data infrastructure.
The board of directors will include representatives from both firms, with blockchAIn DI appointing the future CEO and chairman. As of December 31, 2024, Signing held $181,271 in cash and equivalents.
Price Action: SGN shares traded higher by 49.07% at $1.19 in premarket at last check Monday.
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