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Bit Mining raises $50M to take operations out of China

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Company BIT Mining attracted $ 50 million in investment in a month to move its activities outside of China.

BIT Mining Limited, based in Shenzhen, was among the victims of the repression by the Chinese authorities.

During June, the leadership of several Chinese provinces ordered miners to cease operations. Among them: Yunnan, Sichuan, Qinghai, Xinjiang and Inner Mongolia.

According to the newspaper’s estimates, the disconnected equipment of the company consumed 400 MW.

As soon as the government of the country began to take drastic measures to combat miners, even before the business closed, BIT Mining began to raise funds for the move through a private placement of shares.

The company listed on the New York Stock Exchange. And in less than a month raised the required amount through agreements with institutional and accredited investors.

The investment round was structured. 100 million shares were available for purchase at a cost of $ 5 for a package of 10 shares. In addition, a commitment attached to each package. According to which the investor has the opportunity to buy out another package of securities in the future at a price of $ 6.81 (which is a very advantageous offer with a strong price increase).

Net proceeds from the sale of shares in the amount of $ 50 million will be used to buy new equipment, build new data centers outside of China, expand existing infrastructure and improve solvency ratios.

According to the announcement, BIT Mining has already shipped the first batch of mining machines to neighboring Kazakhstan.

Chinese mining pool «Bit Mining»

Bit Mining owned by 500.com, a lottery company and also operates one of the largest mining pools, BTC.com.

So, it is one of the largest pools in the world. And also a manufacturer of mining equipment, including for Sequoia Capital, ING Capital and several other undisclosed investors as part of a plan to increase its credibility among investors.

The firm intends to expand the production of chips for artificial intelligence and create mining farms in various countries, including the United States.

So, after the ban in China, Bit Mining announced the construction of a mining center in Texas. As you know, this state is friendly towards the cryptoindustry. In addition, miners have the opportunity to significantly save on cheap Texas electricity. The cost of the erected production for the production of digital currencies estimated at about $ 26 million.

As we noted above, in addition to the United States, the company also expanding its presence at the expense of Kazakhstan.

Recall that in May the company invested over $ 9 million in the construction of a mining center in Kazakhstan.

An unnamed source said they also intend to offer guidance on managing the company as part of the deal.

Bit Mining, through which miners join forces to have a better chance of calculating blocks and getting their rewards, is currently the second largest mining pool in the world. It controls 15.3% of the network’s total hash power.

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