Hatten Land Ltd, a Melaka-based property developer, is using bitcoin to repurpose its mall footprint as part of a larger strategy that incorporates blockchain, online-to-offline shopping, and sustainable energy.
In collaboration with Singapore-based Frontier Digital Asset Management Pte Ltd, the company will run 1,000 cryptocurrency mining (cryptomining) rigs on its Malaysian properties.
Hatten Technology (S) Pte Ltd, a wholly-owned subsidiary of Hatten Land, has signed an agreement with Frontier, which operates over 700 cryptomining machines in Singapore.
Frontier will build, run, manage, and maintain at least 1,000 cryptomining machines at Hatten Land sites in Melaka under the conditions of the deal.
The rigs will be operational throughout the year, initially mining Bitcoin, with other currency being considered in the future.
Hatten Land is Hatten Group's property development arm, with key interests in real estate development, investment, hospitality, retail, and education.
In Melaka, the firm owns and runs six shopping malls with a total floor area of more than six million square feet, as well as four hotels.
Datuk Colin Tan June Teng, Hatten Land's executive chairman and managing director, said the definitive agreement with Frontier demonstrates the company's commitment to moving to green cryptomining in Melaka.
In a statement released today, he added, "We will leverage Frontier's proven expertise to build cryptomining centres, starting in Melaka."
The cryptomining machines will be placed in stages, commencing in the fourth quarter of this year, according to Tan.
He hopes that this deal will pave the way for Hatten Land's assets to be transformed into a centre for blockchain and other digital activities that will help Melaka grow and transform.
Tan told NST Property in August 2020 that the Hatten group remains deeply rooted and vested in Malaysia with over 20 land banks and development rights in high-growth locations.