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Business Alliances5721S Crypto Energy Inc.Iron and steel and non-ferrous metals

Notice Regarding Advisory Investment in Environment Friendly Holdings Corp. and Execution of a Business Alliance Agreement with the Company

We have decided to subscribe to share acquisition rights issued by Environment Friendly Holdings Corp. and invest approximately ¥1.3 billion. In addition, we have entered into a business alliance agreement under which the two companies will examine the commercial viability and business models for mining, battery storage and AI data center businesses.

Worth reading
50Recurring
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Direction
Neutral
Direction inferred from the company’s description.
Scale
13
¥100 million
Wording
Avoiding a definitive answer
How definitive the wording is.

Agreements reached under this partnership

Execution of a business alliance agreement and advisory investment through the subscription of share acquisition rights
5721S Crypto Energy Inc.
Alliance partnerEnvironment Friendly Holdings Corp.
Details of the alliance
  1. 1

    Assessing business viability based on power costs and facility efficiency

  2. 2

    Considering the introduction and operation of mining equipment

  3. 3

    Considering integrated models combining natural gas and renewable energy

  4. 4

    Considering the development of sites in Japan and overseas

  5. 5

    Formulation of an implementation plan led by us

  6. 6

    Selecting candidate sites and considering land utilization

  7. 7

    Designing grid connections and power infrastructure

  8. 8

    Establishing business schemes and operating structures

  9. 9

    Considering facility configurations based on power demand characteristics

  10. 10

    Stabilizing power supply and optimizing costs using battery storage

  11. 11

    Examination of the introduction of GPU servers and network equipment

  12. 12

    Sharing information on market trends and business schemes

  13. 13

    Jointly assessing business viability, profitability and risks

  14. 14

    Selecting business partners and creating opportunities

These are items that the documents state the two companies will work on. The lines above and below represent arrangements between the two companies.

Capital and personnel relationships

This indicates whether the companies will do more than work together, such as holding each other’s shares or seconding personnel (capital and business alliance).

Number of shares acquiredEquivalent to 28,500,000 shares (285,000 share acquisition rights; 100 shares per right; percentage of total shares outstanding: Not disclosed)
Acquisition priceTotal payment for the share acquisition rights: ¥14,820,000; total exercise price: ¥1,282,500,000; total investment: approximately ¥1.3 billion
Dispatch of directors and officersWe do not plan to participate in the management of Environment Friendly Holdings Corp.; no dispatch or acceptance of officers is stated
Shareholding PolicyClassified as a pure investment for the purpose of generating investment returns; long-term holding, lock-up and transfer restrictions: Not disclosed
About the partner
Business DescriptionReuse business, resource and energy business, and environmental business
LocationMinato-ku, Tokyo
Share capital¥237 million (as of 31 December 2025)
Net Sales¥1,371 million (fiscal year ended December 2025)
Operating profit¥110 million (fiscal year ended December 2025)
Impact on Business Performance

The impact of this investment and business alliance on our financial results is expected to be immaterial

Date of board resolution21 May 2026Contract Date21 May 2026Alliance start date8 June 2026 (予定)Share Acquisition Date and Payment Date8 June 2026
Agreements reached under this partnership
ItemDetails
Name of alliance partnerEnvironment Friendly Holdings Corp.
Alliance partner's business activitiesReuse business, resource and energy business, and environmental business
Alliance partner's locationMinato-ku, Tokyo
Alliance partner's capital¥237 million (as of 31 December 2025)
Alliance partner's net sales¥1,371 million (fiscal year ended December 2025)
Alliance partner's operating income¥110 million (fiscal year ended December 2025)
Type of allianceExecution of a business alliance agreement and advisory investment through the subscription of share acquisition rights
Details of the allianceAssessing business viability based on power costs and facility efficiency, Considering the introduction and operation of mining equipment, Considering integrated models combining natural gas and renewable energy, Considering the development of sites in Japan and overseas, Formulation of an implementation plan led by us, Selecting candidate sites and considering land utilization, Designing grid connections and power infrastructure, Establishing business schemes and operating structures, Considering facility configurations based on power demand characteristics, Stabilizing power supply and optimizing costs using battery storage, Examination of the introduction of GPU servers and network equipment, Sharing information on market trends and business schemes, Jointly assessing business viability, profitability and risks, Selecting business partners and creating opportunities
Number of shares acquiredEquivalent to 28,500,000 shares (285,000 share acquisition rights; 100 shares per right; percentage of total shares outstanding: Not disclosed)
Acquisition priceTotal payment for the share acquisition rights: ¥14,820,000; total exercise price: ¥1,282,500,000; total investment: approximately ¥1.3 billion
Dispatch of directors and officersWe do not plan to participate in the management of Environment Friendly Holdings Corp.; no dispatch or acceptance of officers is stated
Shareholding PolicyClassified as a pure investment for the purpose of generating investment returns; long-term holding, lock-up and transfer restrictions: Not disclosed
Date of board resolution21 May 2026
Contract Date21 May 2026
Alliance start date8 June 2026 (予定)
Share Acquisition Date and Payment Date8 June 2026
Impact on Business PerformanceThe impact of this investment and business alliance on our financial results is expected to be immaterial
Items this document does not state (6)
Shareholding ratioOverview of the joint ventureOwnership ratioContract PeriodNumerical targets under the allianceChange in major shareholders

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The aim is to combine our management resources, including land, with the counterparty's business development and project execution capabilities in the environmental and energy fields to build next-generation energy and data infrastructure. The investment is also intended to generate returns through an increase in the value of the shares as the counterparty's business grows.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Notice Regarding Advisory Investment in Environment Friendly Holdings Corp. and Execution of a Business Alliance Agreement with the Company | S Crypto Energy Inc. (5721) timely disclosure | Komori