Synteq Digital Partners with Horizon Kinetics for Major Real Estate Acquisition in Strategic Growth Move

Synteq Digital's Strategic Expansion through Real Estate Acquisition

In an exciting development, Synteq Digital has officially entered into definitive agreements with Horizon Kinetics and FRMO Corp. to acquire pivotal real estate assets, particularly a substantial data center in North Carolina. This data center, which boasts a capacity of approximately 10 megawatts (MW), is part of an all-equity transaction that represents a significant milestone in Synteq Digital's ambitious growth strategy.

The Partnership with Horizon Kinetics

Horizon Kinetics is a well-known investment management firm based in New York City, managing around $10.4 billion in assets. With this acquisition, Horizon Kinetics and FRMO will emerge as shareholders of Synteq Digital, a move that signifies a strong alignment in their visions for growth and value creation within the digital infrastructure landscape.

Taras Kulyk, the CEO of Synteq, expressed optimism regarding this partnership, saying, "This acquisition marks a pivotal moment in our growth strategy as we begin to build our balance sheet, allowing us to expand our service capabilities and infrastructure footprint rapidly." Kulyk further emphasized the excitement of welcoming Horizon Kinetics as an institutional shareholder, highlighting the firm's long-term investment philosophy that fits seamlessly with Synteq's mission to enhance and diversify the digital compute ecosystem.

Horizon Kinetics' Insight on the Deal

Murray Stahl, the CEO of Horizon, added to the conversation, acknowledging that their long-standing relationship with Synteq has provided them with firsthand experience of the company's commitment to operational excellence and innovation. This deeper collaboration is rooted in a shared goal of advancing Synteq's initiatives in digital mining and high-performance computing.

Implications of the Acquisition

The acquisition is not merely about expanding operational capacity; it’s about further establishing Synteq as a key player in the digital compute arena. The strategic move to integrate these real estate assets into their portfolio ensures that Synteq can provide additional value to clients, especially within sectors such as digital mining and high-performance computing (HPC).

As highlighted by Kulyk, the transaction is a crucial aspect of their growth strategy, reinforcing the company’s objectives to diversify its offerings and enhance its service range in an evolving market. By entering into this partnership with Horizon Kinetics, they are poised not only for immediate growth but also for sustained expansion in a sector that increasingly relies on robust and scalable digital infrastructure.

Next Steps and Future Growth

The completion of this significant transaction is pending customary closing conditions, marking just the beginning of a strategic journey for Synteq Digital. As they set their sights on future acquisitions and expansions, the collaboration with Horizon Kinetics lays a solid foundation for revolutionary strides in the digital compute sector, aiming to address the pressing needs of large enterprise data center operators and other stakeholders within the industry.

Synteq Digital remains committed to supporting its clients with enhanced services and infrastructure, further solidifying its reputation in the rapidly advancing digital landscape. With Horizon Kinetics on board, the prospects for innovation and growth appear incredibly bright.

About Synteq Digital

Synteq Digital is a prominent player in providing services and infrastructure in the digital mining and high-performance computing sectors. The company is dedicated to expanding its capabilities to meet the growing demands of the digital compute landscape through strategic acquisitions and service diversification.

About Horizon Kinetics LLC

Horizon Kinetics is known for its investment advisory service that guides long-only and alternative value-based investing strategies. It operates through its subsidiary investment manager, Horizon Kinetics Asset Management, providing proprietary research and advisory services to its clients.

About FRMO Corp.

FRMO Corp. is engaged in advisory and consulting in the asset management sector, contributing to the development and execution of innovative strategies in finance.