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News: Mining Power Group, Inc. (RCGR) Enters into Letter of Intent to Acquire New York Data Center


MIAMI, August 2, 2018 /PRNewswire/ --

Company To Provide State Of The Art Data Centers Designed To House Third Party's Crypto Mining Servers; RCGR Facilities Can Provide Substantial Savings In Housing And Electrical Costs.

Mining Power Group, Inc., (the "Company" or "RCGR") (RCGR) announced today that it had signed a letter of intent to acquire the majority ownership interest of a privately-held upstate New York data center which provides specialized low-cost hosting services for the operation of cryptomining machines owned by third parties from around the world. The data center has the capacity to host thousands of cryptomining machines. Under the terms of the proposed transaction, the majority-owned company will operate as a subsidiary and maintain its current management. Over time, the Mining Power Group will invest funds for the expansion of the data center facilities. Additional details of the pending transaction were not disclosed.

Separately, the Company is in negotiations for a similar purchase of a majority interest in an unrelated private-held company involved in the development of products for the cryptomining industry. Results of the negotiations will be announced at a later date.

The Company sees that in the coming months and years that individual company data centers will become too costly for these companies to operate effectively and efficiently. RCGR sees a need in the market and intends to at the forefront of providing an inexpensive way for individual crypto mining companies to survive and thrive.

Crypto mining requires that specialized high performance hardware to be housed in secure data centers and can be quite costly. Crypto mining is an extremely computing intensive activity and the need for both electric and computing power increases over time. Along with the demand for this kind of specialized hardware housing, the growing demand for data centers to equip and to handle cooling of this kind of heat generating hardware is increasing. The cost of the electricity alone can be quite substantial. RCGR's centers can provide substantial savings to the third parties that house their hardware in the Company's facilities. One of the bigger savings will be the reduced cost of electricity that the Company will be able to provide.

FORBES has said: "...data centers (are evolving) to meet the need, growing in size and scale as well as energy efficiency." https://www.forbes.com/sites/christopherhelman/2018/01/16/bitcoin-mining-uses-as-much-power-as-ireland-and-why-thats-not-a-problem/

In building its own data center or rented a colocation facility, a company continues to be responsible for the data processing hardware and IT infrastructure software. It also needs "...an abundance of electrical power, internet connections, heavy-duty cooling equipment, generator and battery-based power backup systems and miles of copper and fiber-optic cables? (a company must continue to) invest heavily to keep it all operational, maintained and growing to provide enough capacity to meet growing business demands... Ultimately, most companies will ditch their own data centers and get out of the data center hardware and IT infrastructure software business altogether, because it's not core to the business. https://www.forbes.com/sites/forbestechcouncil/2018/07/05/when-do-you-decide-to-ditch-your-own-data-center/#625103b6426e

Dror Svorai, President and CEO, stated, "We are extremely excited to have put together this transaction which will firmly establish us as a major low-cost hosting service for cryptomining in the U.S. and we believe, around the world. We see a growing need for high-tech data centers with state of the art hardware housing and cooling mechanisms in the coming year."

About Mining Power Group, Inc.

Mining Power Group, Inc. was original formed as Rich Cigars to distribute, brand and market tobacco products. Following a change of control in November 2017, it changed its name and shifted its focus to became a holding company for new subsidiary operations serving the cryptomining industry. The Company trades under the symbol "RCGR") and is a fully reporting SEC company listed on the OTC market. The Company has paid the fee and is in the process of submitting its application to OTC Markets in order to uplist to the OTCQB, which it plans to accomplish by September 1, 2018. For additional information on the Company, visit, http://www.miningpowergroup.com.