Bitcoin (BTC), Cryptocurrency, News, Regulation

BIT Mining Is Planning Expansion Outside Of The Chinese Market With Newly-Raised Funds

Bit Mining (a crypto mining company based in Shenzhen) is seeking an exit from the crypto industry of China in return for the recent crackdown activities of China over crypto mining. For this purpose, the company is collecting funds of nearly $50 million for a bailout plan to leave the market of the country.

On 12th July, it was announced by the company that it has signed a pact with the chosen investors from certified organizations for the collection of a rough $50M via an individual placement.

The firm is raising this amount for tackling the crackdown that the communist party of China has inflicted on crypto mining two months back. In doing so, the company is focused on incorporating some new mining machines for constructing additional data centers and broaden the infrastructure. A provider of lottery services in China, known as ‘500.com’ and ranked by the New York Stock Exchange, is the owner of Bit Mining which controls the larger mining pool named BTC.com.

Bit Mining will provide 100M ordinary shares of Class A in return for $5.00 charged over every ten shares. Of which, each share displays a warrant to the investors that they can redeem for purchasing some additional shares the next time. A specific period spanning three years will be allocated for the warrant, and each one of them will be practically operable till the six months after the date of its issuance and the exercise price for each average ten shares of Class A.

H.C. Wainwright & Co. (an investment bank in New York) is functioning as the only placement agent who is offering private placement till it will be closed on 16th July.

The aftereffects of the mining crackdown of China caused many of the Chinese miners to settle in Texas, as it is known for its cost-effective electricity supply. Nikkei Asia, in its 24th June article, states that Bit Mining has a framework to deposit $26M for the building of a data center, containing the capacity of 57-megawatts, in Texas, which is now commonly known as a crypto-friendly state.

It has been reported recently that the initial batch of the mining machines has been successfully delivered to Kazakhstan by the firm. In the batch, there are 320 machines for mining on an anticipated hash rate capability of approximately 18.2 ‘petahash’ over one second (PH/s).

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