Crypto Mining Firm Plans to Exit China’s Market
The crypto mining firm Bit Mining is looking to exit China’s market in response to the recent government crackdown on mining. China turned its attention to the local crypto mining industry’s energy consumption following large-scale power outages in Xinjiang.
The country’s actions against cryptocurrencies continue to alienate major miners. In fact, the Dubai-based investment company IBC Group plans to end Bitcoin and Ether mining operations in the country. The company has major crypto mining operations in the country, however, it plans to distribute its operations to the United Arab Emirates, Canada, Kazakhstan, and other countries.
Bit Mining is owned by Chinese lottery service provider 500.com. It operates the main mining pool, BTC.com. The firm’s business covers crypto mining, mining pool as well as data center protection. This firm owns the entire mining pool business operated under BTC.com, including the domain name BTC.com.
Jihan Wu founded BTC.com in 2012. Subsequently, the Chinese lottery service provider acquired BTC.com in February. The Shenzhen-based firm entered into a definitive agreement to acquire a 7-nanometer crypto mining machine manufacturer Bee Computing.
Crypto mining firm and its plans
The crypto mining firm agreed with selected investors to raise $50 million through a private placement. As a result, the crypto mining firm will offer 100 million Class A ordinary shares at a purchase price of $5.00 per 10 shares. Each share comes with a warrant that investors can redeem to buy additional shares in the future. The warrants will have a fixed term of three years and will be exercisable in half a year from the date of release, with an exercise price of $6.81 per 10 Class A ordinary shares.
New York-based investment bank H.C. Wainwright & Co, is the sole placement agent for the offering. The private placement is expected to close on Friday.
Numerous Chinese crypto mining firms want to relocate their operations to Texas, and Bit Mining is not an exception. Bit mining plans to invest millions of dollars into building a 57-megawatt data center in Texas.
Several weeks ago, Bit Mining successfully delivered its first batch of mining machines to Kazakhstan. The first batch included more than 300 mining machines with an estimated total hash rate capacity of 18.2 petahash per second (PH/s). The firm expects to ship its remaining mining equipment to overseas data centers during the coming quarters.
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