Crypto Mining Capitalization May Become An Irresistible Trend
Some listed companies focusing on crypto mining have emerged one after another as bitcoin price skyrocketing. The shares of those listed companies in the United States and Canada, such as RIOT Blockchain, Bit Digital, Marathon Patent Group, have soared.
500.com, a top online sports lottery service provider in China is likely to add Bitcoin to the game as it announces a definitive share subscription agreement that would be settled in U.S. dollars or in cryptocurrencies. The company made an agreement to issue and sell newly-issued Class A ordinary shares of its company to Hong Kong-incorporated Good Luck Information Technology. The deal will see Good Luck Information purchase 85,572,963 Class A Shares for approximately US$23 million at US$0.269 per share to be settled in U.S. dollars or in cryptocurrencies.
On the same day, shares of 500.com rose 134% and triggered a circuit breaker. So, is the combination of “crypto mining” business and the capital market a move taken by individual companies by taking advantage of the rising cryptocurrency price, or is it based on the general trend of the situation?
Some commentators believe that “crypto mining” themed listed companies are in the ascendant. Although the short-term performance trend is strong, it does not reflect their real commercial value. It is just a flash in the during the crypto bull. Once bitcoin has a significant correction, it will be hit back to its original form. The long-term fluctuation of coin price will cause the income instability of listed companies, so for the capital market, “crypto mining” as a business model is not mature enough.
With the gradual rational and relaxed attitude towards crypto mining from China’s authority, the continuous accumulation of bitcoin’s global consensus value, and the maturing investment mentality and organizational ability of crypto miners, the crypto mining has been more in line with the tone of capital than ever before.
Take the large-scale blockchain big data center in Sichuan province, which is invested, constructed and operated by 500.com, as an example. The commonly known “crypto mining farm” is firmly exploring the way of compliance. In addition to the formal power approval, the center also has the park approval, from relevant government departments.