Home » Bit Mining Has Raised $50 Million in Order To Relocate Its Operations From China

Bit Mining Has Raised $50 Million in Order To Relocate Its Operations From China

by CryptoWordTalk

Bit Mining, a crypto mining company headquartered in Shenzhen, is seeking $50 million to finance its exit from the Chinese market.

As announced on July 12, the company has entered into a private placement deal with a limited group of institutional and accredited investors to fund $50 million.

Bit Mining is seeking funding in reaction to the Chinese Communist Party’s May crackdown on cryptocurrency mining, with intentions to “acquire additional mining machines, build new data centers, and expand its infrastructure internationally.”

Bit Mining is owned by Chinese lottery service provider 500.com, which is listed on the NYSE and runs the world’s largest mining pool, BTC.com.

Bit Mining will issue 100 million Class A ordinary shares at a purchase price of $5.00 per ten shares as part of the private placement.

Each share includes a warrant that may be redeemed for more shares in the future. The warrants will expire three years from the date of issue and will be exercisable six months from the date of issuance at a price of $6.81 per ten Class A ordinary shares.

H.C. Wainwright & Co., a New York-based investment bank, is serving as the sole placement agent for the offering, which is scheduled to complete on July 16.

As a result of China’s mining crackdown, many Chinese miners are eyeing the state of Texas for its cheap energy. According to a June 24 Nikkei Asia story, Bit Mining intends to spend $26 million in the construction of a 57-megawatt data center in a cryptocurrency-friendly state.

Apart from assisting BIT’s international expansion plan, the offering, which is being led by H.C. Wainwright & Co., will enable the bitcoin mining company to buy more mining equipment, construct new data centers, expand its infrastructure, and strengthen its working capital position. As a result, BIT may raise the hash rate capacity of its BTC.com mining pool, which presently accounts for more than 11% of the overall hash rate on the Bitcoin network.

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