Cryptomining firm Z Squared Inc. has signed a definitive agreement to acquire 100 percent of Paradox Data and take control of its Union County data center campus near El Dorado, Arkansas.

The agreement expands on a deal announced in June, under which Nasdaq-listed Z Squared planned to acquire a 51 percent stake in Paradox for $5 million.

Under the revised agreement, Z Squared will issue $5m of Series A convertible preferred stock at closing. Paradox and an affiliated company could receive another $20m in preferred stock if the campus meets four development milestones.

The first additional $5m payment is linked to the initial energization of AI compute capacity at the existing site, or Z Squared asking the seller to vacate the current building. The remaining payments are tied to the campus reaching 50MW, 100MW, and 150MW.

At each capacity threshold, $2.5m would be awarded when Z Squared receives a binding request for service from an AI customer, followed by another $2.5m once the capacity is energized.

The transaction requires no cash payment at closing and is not being financed through debt. CEO David Halabu said 80 percent of the potential consideration would only be earned if the development milestones are reached.

Located at 713 Industrial Road, the site has an existing interruptible service agreement with Entergy Arkansas covering up to 8MW. Paradox also holds a contract for adjacent land, while Z Squared plans to combine utility power with on-site generation to support the proposed expansion.

The company previously said it aimed to develop a 170-acre campus with up to 150MW of capacity for AI and high-performance computing workloads. The site is expected to use immersion cooling for high-density deployments.

Z Squared has engaged digital infrastructure consultancy A2 Advisors to support development planning, project delivery, vendor selection, leasing, and capital strategy for the campus.

The company’s chief technology officer, Jeffery Harris, holds an indirect minority interest in Paradox Infrastructure, the seller. An SEC filing lists Harris as holding a 20 percent indirect interest in the company.

The transaction remains subject to closing conditions, including the transfer of the property and associated assets to Paradox Data. The parties expect the deal to close within 30 days of signing, with an outside date of September 30. This can be extended to December 31 under certain circumstances.

Florida-based Z Squared operates cryptomining equipment across sites in North Carolina, South Carolina, and Iowa. The company has historically focused on mining Dogecoin and Litecoin, but is expanding into power generation and AI/HPC data center development.

Z Squared is also working to acquire SkyCore Digital, which operates three North Carolina sites offering 24MW of energized capacity and a potential build-out of up to 42MW.

Union County, in which El Dorado is located, has approved a data center moratorium that will run from July 2026 to 2027. The city of El Dorado has also introduced its own moratorium against data centers, running to November 2026.