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Chinese BTC Miner BIT Mining Raises $50M in Private Placement

UTC by Mercy Tukiya Mutanya · 2 min read
Chinese BTC Miner BIT Mining Raises $50M in Private Placement
Photo: BTC.com / Facebook

BIT is just one of several Bitcoin miners forced to take their operations outside China following the government’s recent crackdown on BTC mining.

Chinese Bitcoin miner BIT Mining Limited (NYSE: BTCM) has secured $50M in a private placement. The firm has revealed that it intends to use the funds to finance the construction of new data centres oversea, to purchase new equipment and generally expand its operations.

The private placement was announced in a press release on July 12. the private placement has tentatively been set to July 16, “ subject to satisfaction of customary closing conditions” the company revealed that it had entered securities purchase agreements with select institutional and accredited investors. the press release revealed that the company would issue 100 million Class A ordinary shares plus warrants to purchase a further 100 million at $5 per Class A ordinary share. The warrants come with a term of three years and will be exercisable six months after the date of issuance at $6.81 per ten Class A ordinary shares. Under specified conditions, ten Class A ordinary shares can be converted into a single American Depositary Share Company (ADS) of the company. 

BTCM stock hit a 52-week high of $35 mid February. It, however, took a 19% tumble following the announcement of the private placement.

BIT is just one of several Bitcoin miners forced to take their operations outside China following the government’s recent crackdown on BTC mining. Following the government’s announcement, a notice that the company shut down its Sichuan province-based operation which was responsible for around 3% of the company’s revenue. BIT Mining went on to ship 320 machines to Kazakhstan with plans to ship a further 2600 at a later date. The company has also invested $25M into a new mining data centre in Texas.

The press release also outlined the companies other ventures outside and around bitcoin mining and revealed the hash rate capacity of its machines.

“The Company has deployed bitcoin mining machines with a theoretical maximum total hash rate capacity of approximately 1,031.5 PH/s, owns three hydroelectric cryptocurrency data centres with a total power capacity of 435MW and owns the entire mining pool business operated under BTC.com, including the domain name BTC.com and the cryptocurrency wallet of BTC.com. The Company has also entered into a definitive agreement to acquire a 7-nanometer cryptocurrency mining machine manufacturer, Bee Computing (HK) Limited, to complete its vertical integration with its supply chain, increase its self-sufficiency and strengthen its competitive position,” reads the statement.

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Mercy Tukiya Mutanya

Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student. She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.

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