Shares of New Era Energy & Digital rose after the company said one of its subsidiaries entered into a 20-year power purchase agreement with an affiliate of Vistra.
The stock climbed 21%, to $7.11, in premarket trading Monday. Through Friday's close, shares are up 70% year to date.
New Era said its subsidiary, TCDC PowerCo, entered into an agreement with Luminant ET Services, under which Luminant agreed to supply up to 207 megawatts of power to support the first phase of New Era's Texas Critical Data Center project.
The power--expected to be available in the third quarter of next year--will be supplied from Vistra's facility in Odessa, Texas, which is located immediately adjacent to the data-center site, New Era said.
"Having firm, contracted power for phase 1 in New Era's name is an incredible milestone which we believe materially reduces phase 1 development risk at TCDC," New Era CEO Charlie Nelson said.
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