ALBANY, N.Y., May 5, 2020 /PRNewswire/ -- Mechanical Technology, Incorporated ("MTI" or the "Company"), a publicly traded company (OTC Pink: MKTY) headquartered in Albany, New York, announced today that EcoChain, Inc. ("EcoChain"), a wholly-owned subsidiary of MTI, entered into a definitive agreement to acquire the intellectual property of Giga Watt, Inc. ("GigaWatt"), and certain other property and rights of GigaWatt associated with GigaWatt's operation of a crypto-mining operation located in Washington State. GigaWatt was a leading player in the bitcoin economy of Central Washington State before declaring Chapter 11 bankruptcy in the United States Bankruptcy Court for the Eastern District of Washington during November 2018. The acquired assets will form the cornerstone of EcoChain's new pilot cryptocurrency mining operation. EcoChain is purchasing the assets for cash consideration of $200,000 and EcoChain will be assuming certain contractual obligations of GigaWatt related to existing leases and utility power supply. Following completion of the acquisition, EcoChain intends to sell acquired equipment that is determined to be excess in nature so as to reduce EcoChain's overall transaction costs.
The transaction has been approved by EcoChain's Board of Directors and is subject to customary closing conditions, including satisfaction of bankruptcy bidding procedures and receipt of approval by the Bankruptcy Court. In the event bankruptcy bidding procedures result in a person that is not EcoChain acquiring the applicable assets, EcoChain will be paid a break-up fee of at least $40,000. The transaction is expected to close during the second quarter of 2020.
Please visit https://www.mechtech.com under News & Events.
EcoChain, Inc., a wholly-owned subsidiary of MTI, is developing a pilot cryptocurrency mining facility powered by renewable energy to integrate with the bitcoin blockchain network.
MTI is engaged in the design, manufacture, and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. MTI Instrument's products use a comprehensive array of technologies to solve complex, real world applications in numerous industries including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage.
For more information about the Company, please visit https://www.mechtech.com.
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SOURCE Mechanical Technology, Incorporated