China Crypto Roundup (Feb.15-Feb.21): Several Listed Companies Increased Investment in Mining, Well-known Investor Bought Bitcoin ETF
1. 500.com announced acquisition of Bitmain’s spin-off BTC.com mining pool
On February 16, 500.com announced that it would acquire BTC.com mining pool, which Wu Jihan spin-off from Bitmain, for about 10% of the shares, including the entire mining pool business of BTC.com, the BTC.com domain name and the BTC.com cryptocurrency wallet. The first closing transaction is expected to close by April 15, 2021. BTC.com currently ranks third in Bitcoin computing power. Formerly a lottery website, 500.com has recently transformed itself into a mining industry, filling in a large number of Sichuan mining resources, and now has a market value of $860 million.
2. The9 signs $10 million Filecoin Mining Machine Cluster and Technology Cooperation Framework Agreement
On February 16, The9 (NASDAQ: NCTY) announced that it has signed a $10 million framework agreement with a Filecoin mining service provider to purchase the Filecoin mining server cluster and technical services for cash. Prior to this, The9 had purchased a Filecoin fleet and started Filecoin mining. The9 now has independent nodes with a total of 8P bytes of storage capacity, which continues to increase.
3. Ebang International issued additional securities for the layout of Bitcoin mining business
On February 17, Ebang International (EBN.US) announced that it had completed a previously announced secondary offering of 14 million shares of securities at A public price of $5.00 per share (each consisting of one Class A common share and one warrant to subscribe for up to 0.5 Class A common shares), generating gross revenue of approximately $70 million. Each of the two warrants is exercisable at a price of $5.25 per share and the net proceeds from the offering are intended primarily to be used for research, development, production and sale of cryptocurrency-related ASICs and equipment, expansion of cryptocurrency mining operations, establishment and operation of cryptocurrency mining farms, and general corporate purposes. The company plans to operate its bitcoin mining business by deploying a combination of home-grown mining machines and machines it buys from other manufacturers, as well as leasing computing power from other mining farms.
4. Hong Kong-listed Sun International plans to issue new shares to acquire 1,000 cryptocurrency mining machines
On February 18, Sun International, a Hong Kong-listed company, announced that Extra Blossom Holdings Limited, an indirect wholly-owned subsidiary of Sun International, has entered into a non-binding memorandum of understanding with Mindfulness Venture Fund I, L.P for the proposed transfer and sale of cryptocurrency mining equipment. Bitmain Antminer S19, Bitmain Antminer T19, MicroBT WhatsMiner M32, and MicroBT WhatsMiner M31S were in a total of 1000 cryptocurrency miners. The exact amount will be renegotiated and will be paid in the form of a rights issue (offering price of HK $0.321 per share) or otherwise.
5. Well-known private equity investor Dan Bin bought bitcoin ETF.
On February 19, Dan Bin, chairman of Shenzhen Oriental Harbour Investment Management Co., Ltd., said on his Weibo that he had bought Bitcoin ETF. At the same time, he posted his thoughts on Bitcoin: “Thinking about Bitcoin for the last two days, I used to think that no government could make it legal, and even the United States would not want to lose seigniorage. As Tesla allows Bitcoin to be used as a ‘currency’ for payments, its value could increase. The amount of bitcoin is limited, and if long-term holders increase or companies like Tesla continue to join, reaching the $400,000 that Ark, the bull queen, says is very possible.”