Chinese Mining Firm Pools $50 Million to Build More Mining Farms
Chinese Bitcoin mining firm, BIT Mining has raised $50 million from selling its shares, as part of its plan to broaden its mining horizon to other regions. The mining firm sold 100 million shares to pool that amount. According to a notice issued by the company, it announced that it would open the floor to investors for the purchase of an additional 100 million shares in a private round.
The initial Class A ordinary shares sold by BIT Mining were also done via a private round, and ten shares sold for $5, with each share containing a warrant to purchase additional shares. As part of its expansion goals, the mining firm disclosed that the $50 million pooled from share sales will be directed towards setting up new data centers overseas, buying new mining units, adding to its capital reserves and lastly, broadening its mining infrastructure.
Bit Mining Moves Mining Rigs Out of China
BIT Mining was one of the hardest hits in China’s Bitcoin mining showdown starting from May. The pressure on mining operations increased in June, leading to the massive confiscation of mining rigs in the country. Some mining companies stopped mining completely and decided to sell off their mining rigs at ridiculous prices. However, a plethora of Chinese miners left in the country in droves while seeking refuge in regions where their activities are encouraged.
Chinese regulators attributed the decision to the electricity-intensive nature of Bitcoin mining including the environmental hazards posed by mining. Summarily, China had outlawed Bitcoin mining in line with its anti-carbon policy. The Asian giant is reportedly planning to ‘go green’ by 2060. Following the pressure from Chinese regulators, BIT Mining supposedly moved 320 mining rigs while leaving the country. It is planning to relocate an additional 2600 mining rigs, signaling the end of its operations in China.
As Bitcoin miners left China, some regions were on their bucket list such as Texas, Kazakhstan, Canada, Iran, Uzbekistan. BIT Mining had its sights set on Texas and Kentucky. The mining firm committed a whopping $25 million for a mining farm in Texas recently, as the American State boasts of low-cost electricity and crypto-friendly regulations, which were major appeals for BIT Mining itself and other mining firms.
Chinese Miners Resume Activities in Other Regions, BTC Accumulation Resumes
Aftermath of China’s Bitcoin mining ban was a reduction in both the asset’s mining difficulty and hash rate. In June, both metrics– which are used to determine how well the asset is doing– plunged to their lowest. However, recent data by analytics firm, Glassnode indicate that both are recovering gradually. Glassnode attributes this to the resumption of mining operations by Chinese Bitcoin miners.
Meanwhile, Glassnode also reported that there has been an increase in accumulation of the asset by miners, in contrast with what June’s data indicated. In fact, it was in June that the price of Bitcoin hit a bottom of $28k. In a related development, exchanges have also noted a spike in BTC withdrawals as investors and Bitcoin enthusiasts prepare for a bullish ride in the coming months.
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