Sysorex to fully own New York data center and increase its GPU count for Ethereum mining operations by approximately 10%
HERNDON, Va., Oct. 07, 2021 (GLOBE NEWSWIRE) -- Sysorex (OTCQB: SYSX), the preeminent, U.S.-based, publicly traded Ethereum mining and technologies company, today announced it has appointed Brian Raymond as Chief Technology Officer. Mr. Raymond’s responsibilities will include assisting with business strategy, technical oversight of Ethereum mining operations and expansion of blockchain technologies offerings, M&A support, customer and partner engagements, as well as overseeing hardware acquisition.
In addition, the Company announced it has entered into a preliminary agreement to acquire the remaining 50% ownership in Up North Hosting LLC, a data center owner and operator in upstate New York, currently jointly owned by businesses controlled by Mr. Raymond and Sysorex. Upon closing, Sysorex will own 100% of the data center, which offers the Company immediate access to additional capacity to expand its mining operations. The purchase, which also includes about 1000 GPUs representing approximately 50 Gigahash of compute power, will immediately increase Sysorex’s mining capacity by approximately ten percent. The transaction is subject to a number of closing conditions, including execution of a definitive agreement, and is scheduled to close on or before October 31, 2021.
Mr. Raymond brings extensive experience within the cryptocurrency and blockchain markets, including technical execution, sales, contract development (prime, sub, GSA, and others), software product development, and related services. As a hardware and software architect/manufacturer, he has developed and supported deployments of Application-Specific Integrated Circuit (ASIC) and GPU mining systems for numerous customers. In 2016, four years after entering the cryptocurrency mining industry, he founded Bitworks, a company providing GPU mining systems customers with a full spectrum of commercial-grade mining solutions and installation capabilities. Mr. Raymond also complements the Sysorex Government Services division with his established background in the defense and intelligence sectors, where he delivered various commercial off-the-shelf (COTS) and government off-the-shelf (GOTS) software and hardware solutions for multiple intelligence (multi-INT) sensor data processing customers. He has also developed and deployed artificial intelligence and machine learning solutions for unmanned aerial systems (UAS) clients. Most recently, Mr. Raymond was the Vice President of Technology for Parry Labs, and he previously served as the Chief Technologist for Harris Geospatial Solutions, where he led capability development for both Department of Defense (DoD) and intelligence community (IC) customers.
“Brian has a long tenure in cryptocurrency mining,” said Wayne Wasserberg, Chief Executive Officer of Sysorex. “We regard him as one of the leading experts in the field, with deep experience in the development of proprietary hardware and software. Bringing him in-house and owning 100% of this data center will position Sysorex to further differentiate ourselves in the market. Over the last four years, the joint development of the Up North Hosting data center and our access to hydro power at favorable pricing has underpinned our ability to scale and maintain operational profitability in all conditions. By bringing this data center and Brian fully under Sysorex, we will more closely align ourselves with a strong and experienced technical partner, add approximately 1000 additional GPUs to our fleet, and achieve full ownership of the data center asset to remain highly competitive in the cryptocurrency mining market.”
Zaman Khan, President of Sysorex Government Services, commented, “We are thrilled to have Brian as part of the Sysorex family, which will further strengthen the Company’s executive leadership. Brian’s expertise in the government space, and in-depth understanding of blockchain, NFTs and mining, will provide SGS with the critical tools we need to introduce blockchain technology into the government. SGS has already identified a number of blockchain opportunities, and Brian will be instrumental in helping SGS pursue these opportunities and move them across the finish line.”
“I am excited to join the team at Sysorex, grow our current mining operations and, even more importantly, expand our blockchain technology portfolio,” stated Mr. Raymond. “Partnering with Michael Bay and The Hunt to deliver NFTs to the market is just one way in which we plan to grow Sysorex into a market-leading blockchain technology provider. Ethereum mining still provides a strong opportunity for near-term capacity deployments to provide an excellent return on investment. In addition, the right mining hardware provides ample opportunity to pivot into new GPU-enabled processing, delivering additional long-term upside for Sysorex.”
Brian Venturo, Chief Technology Officer of CoreWeave, which is a significant shareholder in Sysorex, further noted, “Brian Raymond is the ideal CTO for Sysorex. He is one of the preeminent leaders in GPU mining, with deep relationships on the hardware and software side that will prove fundamental to the continued success of the Company. In addition to the exodus of cryptocurrency mining in China, the market for economic, green power has become highly competitive, and this combination adds significant value to the mining operations.”
ABOUT SYSOREX, INC.
Sysorex, Inc. (“Company”) is a data center owner and operator and is the preeminent U.S.-based, publicly traded Ethereum mining and Ethereum Blockchain technologies company. Following the Company’s merger with TTM Digital Assets & Technologies, Inc. (“TTM”), the Company shifted its primary business focus to the mining of Ether (ETH) and opportunities related to the Ethereum Blockchain. The Company currently owns and operates approximately 10,000 NVIDIA GPUs generating approximately 500 Gigahash of computing power, which GPUs include thousands of Cryptocurrency Mining Processors (“CMPs”). These GPUs are currently online and securing the Ethereum Blockchain and generating ETH around the clock with industry leading efficiency. In addition to the mining of ETH, the Company continues to operate its wholly owned subsidiary, Sysorex Government Services, Inc. (“SGS”), a business that provides information technology products, solutions and services to federal, state, and local government, including system integrators. The Company is also advancing strategies to leverage decentralized finance (“De-Fi”) and Non-Fungible Token (“NFT”) opportunities powered by the Ethereum Blockchain.
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Sysorex, Inc. and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Sysorex's results of operations, Sysorex’s ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Sysorex’s technology. Other factors that are detailed in Sysorex's periodic and current reports available for review at sec.gov. Furthermore, Sysorex operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Sysorex disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.
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