Sparrow Hills has a term sheet for investing $3M in an established EPCM company servicing Bitcoin mining industry. Investment from Sparrow Hills will be used to expand existing capabilities of the target company in equipment manufacturing, repair and maintenance, farm management and SaaS platforms into a broader market of data center management for all high-power computing, including artificial intelligence (AI).
Target customer base of re-branded and expanded EPCM will include tech companies like Microsoft, Google, Amazon, ChatGPT etc., and other crypto mining giants like Marathon.
Sparrow Hill exit is intended via partial sales of corporate carve-outs for crypto and AI industries to strategic buyers, datacenter owners, willing to bring the EPCM capabilities in house. Expected returns >10X over 3 years.
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Direct investments alongside GP will establish potential initial platforms across all 5 sustainability verticals of Sparrow Hills that can be rolled or sold into Sparrow Hills Fund.