Signing Day Sports to Acquire AI and Crypto Data Firm blockchAIn Digital Infrastructure in $215M Deal

Signing Day Sports To Acquire Crypto And AI Data Firm In $215 Million Deal - Signing Day Sports (AMEX:SGN)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. 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. Also Read: Versace Exit Is Capri's Big Bet On Michael Kors Revival, Says Analyst 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. Read Next: Nike's Sneaker Buzz And Tariff Risks Could Shape Its Future: Analyst Photo: Shutterstock SGNSigning Day Sports Inc$0.7245-10.0%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum0.78Growth-Quality-Value29.32Price TrendShortMediumLongOverviewGot Questions? AskWhich crypto stocks could benefit from this merger?How will AI companies react to this acquisition?What impact will this have on energy-efficient tech investments?Are there data hosting firms poised for growth?Which mining operations could be disrupted by this deal?How might Signing Day Sports affect market dynamics?What are the implications for U.S. data infrastructure investments?Could this lead to a surge in blockchain technology stocks?Which high-performance computing firms may gain traction?What opportunities exist in domestic crypto mining?Powered By This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Signing Day Sports Signs Non-Binding Letter of Intent to Acquire All Equity of blockchAIn Digital Infrastructure, a Profitable Data Hosting Company

blockchAIn Digital Infrastructure Generated Unaudited Revenue of $26.8 million and Net Income of $4.0 million in 2024 blockchAIn Digital Infrastructure Focused on Crypto Mining, Artificial Intelligence ("AI"), and High-Performance Computing ("HPC") Data Hosting Markets blockchAIn Digital Infrastructure Expected to Expand into -based Crypto Mining , (GLOBE NEWSWIRE) -- ("Signing Day Sports" or the "Company") (NYSE American: SGN), the developer of the app and platform to aid high school athletes in the recruitment process, today announced the signing of a non-binding letter of intent ("LOI") to acquire 100% of the issued and outstanding shares of blockchAIn Digital Infrastructure (collectively together with certain of its affiliates and subsidiaries, "blockchAIn Digital Infrastructure" or "blockchAIn DI") which will operate a crypto mining, AI and HPC data hosting company with an expected 200MW of properties in and . The transaction will be structured as an all-equity exchange in which will acquire all of the equity securities of blockchAIn Digital Infrastructure through the issuance of its equity securities to the equity securityholders of blockchAIn DI. will not be required to make any cash payment to blockchAIn Digital Infrastructure or the securityholders of blockchAIn DI in connection with the transaction. In 2024, blockchAIn Digital Infrastructure generated unaudited revenue of and net income of . The market for digital infrastructure -- including crypto mining, HPC, and AI-related computing -- is evolving rapidly as demand for energy-efficient processing power continues to grow. Amid increasing sustainability standards and renewed emphasis on domestic infrastructure, blockchAIn Digital Infrastructure is positioned to pursue opportunities across a wide range of compute-intensive applications. blockchAIn Digital Infrastructure's current operations include a 40 MW crypto mining hosting facility in with expansion capability to 50 MW for third-party crypto miners in , subject to utility approval. blockchAIn Digital Infrastructure anticipates transitioning to internally owning and mining crypto currency at their facility in late 2025 or early 2026, to facilitate revenue and earnings growth. blockchAIn Digital Infrastructure is also in the process of commissioning a new 150MW crypto mining, AI and HPC data hosting facility in with favorable economics with 34.5kV of interconnectivity to the grid for activation in late 2026. The facility can be modularly built providing flexibility for crypto mining and/or AI and HPC data hosting activities. It is currently anticipated that the first 100MW will be initially focused on internally owned crypto mining operations and the remaining 50MW of capacity used for AI and HPC data hosting. This capital efficient and flexible modular business model will provide blockchAIn DI with optionality to pursue different revenue mixes as the crypto mining, AI and HPC markets continue to develop. views the proposed transaction as a compelling opportunity to enhance its platform by combining with a technology-driven business with strong fundamentals and scalable infrastructure. The transaction between blockchAIn Digital Infrastructure and is intended to result in the combined company being traded on the NYSE American. blockchAIn Digital Infrastructure will continue to operate under blockchAIn DI's management team, and it is intended that blockchAIn Digital Infrastructure will merge with and into a newly-formed subsidiary of with blockchAIn Digital Infrastructure, surviving the merger and become a wholly-owned subsidiary of . "This transaction gives us a highly strategic entry point into the digital infrastructure space -- one that is already revenue-generating, cost-efficient, and well-positioned to scale," said , Chief Executive Officer of . "blockchAIn Digital Infrastructure provides a platform anchored by crypto mining operations, HPC capacity, and a clear roadmap toward AI workload enablement. We are excited about the potential to participate in this growing market through a combined company with proven assets, operational depth, and a strong financial foundation. Our teams will work expeditiously to move the transaction forward and we anticipate completing the due diligence and definitive docs within the next 45 days." The LOI is non-binding, and the transaction's completion remains subject to customary due diligence, execution of definitive agreements, regulatory and stock exchange approvals, and other standard closing conditions. intends to provide further updates as discussions progress. Terms of the Transaction The business combination is expected to be effectuated through a structure, whereby blockchAIn Digital Infrastructure will merge with and into a newly formed subsidiary of with blockchAIn Digital Infrastructure surviving the merger and becoming a wholly-owned subsidiary of . The parties may also agree upon a to-be-determined alternative structure based on the appropriate legal, tax and accounting structuring advice of their respective representatives. Under the LOI, the consideration to be paid at closing to blockchAIn Digital Infrastructure or their securityholders will be comprised of shares of common stock with a value of approximately , subject to an exchange ratio and other certain adjustments, at an implied value per share for of (including adjustment as applicable for exchange listing purposes). Upon the closing of the business combination, the stockholders of are anticipated to collectively own approximately 8.5% of the outstanding common stock of the combined company, and blockchAIn Digital Infrastructure's equity securityholders are anticipated to collectively own approximately 91.5% of the outstanding common stock of the combined company. The board of directors of post-transaction will be comprised of no less than five (5) and no greater than seven (7) directors. At least one director will be designated by the existing directors of , and blockchAIn DI will designate the remaining directors. blockchAIn DI will also designate the new Chief Executive Officer and Chairman of the Company. It is anticipated that the definitive agreements will contain customary representations, warranties and covenants made by and blockchAIn Digital Infrastructure, including covenants relating to both parties using their commercially reasonably efforts to cause the transactions contemplated by the agreement to be satisfied, covenants regarding obtaining the requisite approval of Signing Day Sports' stockholders, covenants regarding indemnification of directors and officers, and covenants regarding Signing Day Sports' and blockchAIn Digital Infrastructure's conduct of their respective businesses between the date of signing of definitive agreements and the closing, and other customary conditions to closing. It is anticipated that definitive agreements will also contain certain termination rights for both and blockchAIn Digital Infrastructure, and, in connection with the termination of any such definitive agreements under certain circumstances, and blockchAIn Digital Infrastructure may be required to pay the other party a termination fee. It is anticipated that any definitive agreements will need to be approved by both of the Board of Directors of and blockchAIn Digital Infrastructure respectively. anticipates it will receive a fairness opinion in connection with the business combination in the event definitive agreements are executed. Entry into definitive agreement is subject to (i) legal, tax and accounting structuring advice, (ii) the satisfactory completion of due diligence investigation by the parties on all aspects of business, operations, financial condition and other assets and liabilities appropriate for a transaction of this nature, and (iii) the satisfaction of the conditions described in the LOI. Although generally non-binding, the LOI contains certain binding exclusivity and confidentiality terms and other binding terms and provisions. The LOI provides that none of the parties will consider any other similar transaction for a period that will continue until the earlier of 45 days from the date of the LOI () or the execution of definitive agreements, subject to certain extension provisions. Following the expiration of such exclusivity period, the LOI may be terminated by any party for any reason by written notice to the other parties. mission is to help student-athletes achieve their goal of playing college sports. app allows student-athletes to build their recruitment profile, which includes information college coaches need to evaluate and verify them through video technology. For more information on , go to https://bit.ly/SigningDaySports. Forward-Looking Statements This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "may," "could," "will," "should," "would," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "project" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, including without limitation, the parties' ability to enter into definitive agreements and complete the transaction, blockchAIn Digital Infrastructure's ability to integrate its business into that of a publicly listed company post-merger, the ability of the parties to obtain all necessary consents and approvals in connection with the transaction, obtain NYSE American clearance of a listing application in connection with the transaction, the parties' ability to obtain their respective equity securityholders' approval, obtain sufficient funding to maintain operations and develop additional services and offerings, market acceptance of blockchAIn Digital Infrastructure's current products and services and planned offerings, competition from existing or new offerings that may emerge, impacts from strategic changes to the parties' business on net sales, revenues, income from continuing operations, or other results of operations, the parties' ability to attract new users and customers, the parties' ability to retain or obtain intellectual property rights, the parties' ability to adequately support future growth, the parties' ability to comply with user data privacy laws and other current or anticipated legal requirements, and the parties' ability to attract and retain key personnel to manage their business effectively. These risks, uncertainties and other factors are expected to be further described in a proxy statement/registration statement to be filed with the relating to this transaction. See also the section titled "Risk Factors" in the Company's periodic reports which are filed with the . These risks, uncertainties and other factors are, in some cases, beyond the parties' control and could materially affect results. If one or more of these risks, uncertainties or other factors become applicable, or if these underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. All subsequent written and oral forward-looking statements concerning the Company or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.