Blockfusion, Blue Acquisition Announce Strategic And Financing Updates Tied To Proposed Business Combination

• A leading AI customer has signed a non-binding letter of intent for up to 300 MW of critical IT capacity at Blockfusion’s flagship campus in Niagara Falls, New York, anchored by 85 MW of guaranteed take-or-pay capacity over a 15-year initial term, establishing a highly visible and predictable revenue base, subject to definitive lease terms.
• Blockfusion has also entered into a term sheet for a $175 million private placement of convertible notes and Blue expects to enter into a non-redemption agreement for approximately $33 million of the funds held in Blue’s trust account, which together are expected to support the initial campus build-out and capitalization of the combined company at closing.
• Blockfusion continues to pursue intended expansion of the Niagara Falls campus, supporting a development pathway in excess of 300 MW of critical IT capacity over time, positioning Blockfusion as a scaled AI infrastructure platform.
   

NEW YORK, June 30, 2026 (GLOBE NEWSWIRE) -- Blockfusion USA, Inc. ("Blockfusion" or the "Company"), a rapidly growing developer transitioning to become an operator of high performance compute ("HPC") and AI infrastructure, and Blue Acquisition Corp. ("Blue") (NASDAQ:BACC), a publicly traded special purpose acquisition company, today announced a series of commercial, strategic and financing milestones in connection with their previously announced proposed business combination (the "Business Combination") to form a publicly traded company named Blockfusion Digital Infrastructure, Inc. ("Pubco"). These developments — a non-binding anchor lease letter of intent with a leading AI customer, non-binding term sheets for anticipated financing through a private placement of convertible notes and a non-redemption agreement, and entry into an exclusivity agreement relating to the Company’s intended expansion of the Niagara Falls campus — represent the foundation for achievement of significant milestones ahead of the anticipated closing of the Business Combination.

Anchor Lease LOI for up to 300 MW

Blockfusion has entered into a non-binding letter of intent (the "LOI") with a leading AI customer for the lease of data center space and power capacity at the Company’s flagship campus in Niagara Falls, New York.

Under the proposed lease terms, the offtaker would commit to up to 300 MW of total critical IT capacity at the campus, anchored by 85 MW of guaranteed take-or-pay capacity to be delivered in tranches, subject to due diligence and definitive lease terms. Each phase of capacity would carry a 15-year firm initial lease term, with two five-year renewal options.

The proposed lease structure is expected to provide long-term contracted revenue visibility supported by take-or-pay commitments, with contractual mechanisms designed to support financing and project-level debt capacity.

The LOI is non-binding, except with respect to certain provisions relating to confidentiality, exclusivity and governing law, and is subject to the negotiation and execution of definitive lease agreements for each tranche, including design and work requirements.

Based on the up to 85 MW of guaranteed take-or-pay capacity, the Company estimates that the potential aggregate lease revenue, assuming terms consistent with the LOI, could be approximately $2.8 billion over the initial 15-year lease term (or approximately $5.4 billion if the offtaker exercises both of its five-year renewal options, for a total term of 25 years), assuming that the lease agreement is executed on the terms currently contemplated, full performance, and no early termination.