Redivider Blockchain has acquired data center company EnergyX.
A privately-held company founded in 2021, Redivider deploys Bitcoin-mining data centers in US ‘Opportunity Zones' to provide tax incentives to investors. On its website, the company offers shares at between $250,000 and $1m apiece. The fund is "3rd party administered by OZ Invested."
Owned by Red Team Investments, EnergyX was launched in 2019 by Red Team's managing partner Trevin Vaughn. The company offers the X-MDC, a modular data center using immersion-liquid cooling, and fleet management software designed for Bitcoin miners.
In 2017, the Trump administration introduced ‘Opportunity Zones’ across the United States in order to increase investment in lower-income areas (although the scheme has also included non-low-income regions), purportedly to bring jobs to the regions.
By investing in Opportunity Zones, investors are able to delay, reduce, or - if they invest for 10 years - completely eliminate tax from capital gains. This is compared to the standard short-term capital gains tax of 37 percent, and long-term capital gains tax of up to 20 percent.
Redivider Blockchain CEO and fund manager Tom Frazier claimed in an interview with the Opportunity Zones Podcast that the company “didn’t come at the Opportunity Zone Fund approach specifically for the benefits of the investor return.”
He argued that the company is “going to create jobs for Americans, and more importantly, we’re going to create jobs where America needs them.”
Bitcoin mining facilities, while data centers, do not have the same security or uptime requirements as traditional facilities. But mining is still quite compute-intensive and consumes a significant amount of energy.
EnergyX claims to reduce some of those energy requirements with liquid immersion cooling, which it also says requires less in-person maintenance (reducing the need for local workers)
Red Team Investments CEO and EnergyX founder Vaughn claimed that “EnergyX is the most advanced, automated and only enterprise-grade modular, immersion-cooled data center." There are several other modular immersion cooling companies that offer similar products, including GRC, Submer, and Asperitas.
The transaction is expected to close in April 2022.
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