- The stock price of Sysorex Inc (OTCMKTS: SYSX) increased by 608.92%. This is why it happened.
The stock price of Sysorex Inc (OTCMKTS: SYSX) increased by 608.92% as it went from a previous close of $1.06 to $7.55. The biggest reason for the stock price increase was the closing of a reverse triangular merger.
Today Sysorex announced the closing of a reverse triangular merger with TTM Digital Assets & Technologies, which is a data center owner and operator and is now the largest U.S. publicly traded Ethereum mining company based in the United States with operations in New York and North Carolina. And as a result of the transaction, TTM’s business and operations will become the core business of Sysorex as the first Ethereum company trading in the U.S. public markets.
Sysorex is going to continue to operate its legacy business providing a comprehensive suite of network performance, secure wireless access, and cybersecurity products to the U.S. government through its wholly-owned subsidiary Sysorex Government Services, Inc.
TTM – a pioneer in the Ethereum mining sector operating since 2017 – has been profitable since inception. And prior to the merger, TTM mined and distributed Ethereum to management and its investors that if held by those investors would be valued at approximately $35 million at today’s Ether (ETH) price of approximately $2,325.
TTM currently owns and operates more than 12,000 NVIDIA graphics processing units (GPUs), including a large number of specialized Cryptocurrency Mining Processors. And these GPUs are currently online and securing the Ethereum blockchain and generating ETH around the clock with industry leading efficiency.
With the merger, the shareholders of TTM exchanged 100% of TTM’s share capital for Sysorex’s agreement to issue 124,218,268 shares of Sysorex common stock to the TTM shareholders – which will represent 80% of the total share capital of Sysorex. And as a closing condition to the merger, a significant portion of the company’s existing debtholders, creditors, and service providers agreed to convert or exchange their outstanding indebtedness or accounts payable, as applicable, eliminating at least $13.5 million of Sysorex debt, substantially improving Sysorex’s balance sheet and significantly increasing Sysorex shareholders’ equity.
In a separate announcement, Indoor Intelligence company Inpixon (Nasdaq: INPX) announced that it has converted a note receivable due from Sysorex in an aggregate amount of approximately $9 million, into shares of Sysorex common stock valued at approximately $17 million (including the shares underlying rights to acquire Sysorex common stock), based on the closing price of Sysorex’s common stock as of April 13, 2021.
Wayne Wasserberg – an executive with more than 15 years of experience working with clients internationally across industries including Forex trading, alternative assets, infrastructure and real estate development- has been elected CEO of TTM, replacing Zaman Khan who will remain on the Board and will continue as the President of SGS.
“TTM’s management team draws experience from multiple industries including crypto-centric development stage businesses, engineering and capital markets who recognized the power and flexibility of the Ethereum blockchain soon after its introduction. The team smartly invested in data center infrastructure shortly after formation and from the outset recognized the importance of owning and operating its cryptocurrency mining infrastructure.”
“The historical strategy was to operate TTM similar to an investment fund distributing mined ETH to its investors. Given the expanded opportunity set presented by Ethereum today including non-fungible tokens (NFTs), development of apps and peer-to-peer financial transactions, and the expectation that future upgrades to the Ethereum network will make Ethereum more scalable, and to further enhance security to support 1,000s of transactions per second, TTM has shifted its strategy to amassing Ethereum in our corporate treasury, providing public shareholders exposure to this asset class as we also expand our platform to unlock value for our new shareholders based on the latest opportunities provided by Ethereum as we position for the exciting future of Ethereum and our business.”
“Given our strong position within the cryptocurrency industry and deep relationships with the leading manufactures of GPUs and application-specific integrated circuits (ASICs), we can expand to the mining of Bitcoin and other cryptocurrencies in the future. However, our current mindset is that Ethereum holds several advantages over Bitcoin. Unlike Bitcoin, which as it has matured, has maintained a conservative stance on technological progress and blockchain usage, Ethereum has embraced progress in on-chain usage allowing for the creation of decentralized applications (dApps) and explosive growth in decentralized finance (DeFi) as programmable money. Given this divergence of approach, we were not surprised last month to see Visa become the first major legacy transaction service provider to settle transactions on top of the Ethereum blockchain.”
“We believe the merger with Sysorex provides our combined company with certain strategic opportunities that we have identified given Sysorex’s relationship with the U.S. Government and the recently announced $2 trillion-plus infrastructure plan and we look forward to exploring new business with SGS. We also see large opportunities around Ethereum’s flexible network that allows users to build and launch NFTs on top of the framework, which can also be stored on the network, and we are interested in exploring optimization of Artificial Intelligence and Deep Learning and quick image rending in partnership with our significant stakeholder, CoreWeave, Inc.”
— Wayne Wasserberg
“The prevalence of Bitcoin, Ethereum and other digital currencies and their values have risen substantially over the past several years and dramatically in the past six months. The use of Ethereum for non-fungible tokens (NFTs), development of apps and peer-to-peer financial transactions are becoming increasingly mainstream, and marquee financial institutions and other household name organizations are accepting digital currencies and also adding this asset class to their balance sheets. While Inpixon has no plans to enter the crypto mining business, we look forward to capitalizing on what we believe is an attractive opportunity at the right time to maximize value for our shareholders.”
— Nadir Ali, CEO of Inpixon
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.