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.
