The Chinese bitcoin mining company announced that it has completed a $ 50 million fundraising that would help facilitate expansion plans
Chinese company BIT Mining announced in a press release on Monday that it had secured $ 50 million in funding through a private placement of Class A common shares. The company said it sold 100 million shares to secure the proceeds and that it justified investors to buy up to an additional 100 million shares.
In the private placement, the Company will issue 100,000,000 Class A common shares and warrants to purchase up to an additional 100,000,000 Class A common shares at a price of $ 5.00 for every ten Class A common shares a warrant included in the price of each Class A common share ”.
The crypto mining company is trying to explore other reasons (overseas) in light of China’s recent stance on crypto mining. BIT Mining said the $ 50 million from the shares sold would be used to build new data centers overseas, purchase new mining equipment, increase the company’s net working capital, and generally expand infrastructure.
BIT is one of the biggest victims of China’s recent crypto rulings. The Asian country has banned mining activities in various provinces because it cites the high power consumption and environmental impact of mining activities. In June, BIT Mining began moving from China and relocated 320 mining equipment to Kazakhstan. It planned another 2,600 to move at a later date.
In addition, the company has also invested in the states of Texas and Kentucky, where regulations and conditions favor crypto mining activities. In Texas, US $ 25 million has already been invested to build a new mining center. China’s war on crypto mining in recent months has resulted in a collapse in crypto markets, led by the dominant bitcoin.
The hash rate of the crypto was also reduced by more than half in just two months. Reducing the hash rate of Bitcoin has made the blockchain adapt itself and reduce the difficulty of mining coins. The miners will therefore try to use the situation to mine elsewhere
BIT Mining’s new expansion formula is designed to help the company expand outside of China. Other mining companies in the country have also responded similarly. A recent report indicates that a logistics company in China was transporting 6,600 Pounds of crypto mining equipment to Maryland, USA. China’s government actions may have had a short-term impact on cryptocurrency, but could potentially help achieve the decentralization of mining activities.