BIT Mining plans to acquire 51-MW data centers in Ethiopia, boosting operations with 17,869 BTC mining machines, enhancing global growth.
BIT Mining Limited, a prominent tech-focused cryptocurrency mining firm, has announced a strategic expansion. The company has entered into a definitive agreement to acquire 51-megawatt crypto mining data centers in Ethiopia and 17,869 top-tier Bitcoin mining machines. These acquisitions will improve the capacity and coverage of BIT Mining’s operations.
The new assets will cost BIT Mining $14.28 million. This is in the form of cash of $2.265 million and Class A ordinary shares of $12.015 million. This is a strategic direction adopted by BIT Mining to enhance its operations in the global crypto mining industry.
It is insured that the transaction will take its course in two phases. The first phase includes the transfer of a 35MW, fully operational mining center, as well as all BTC mining equipment. This part of the deal is expected to close soon. The carriers, which include Delta airlines and AirTran Airways are set to benefit from this deal. The second phase will be another transfer of the remaining data center once construction is done.
BIT Mining to Strengthen Mining Operations Worldwide
CEO Mr. Xianfeng Yang described this acquisition as a significant event. He said it aligns with BIT Mining’s international expansion plan. Yang also said that after the firm sold its mining pool business, it refocused on its core competencies. These include innovation of the mining machine, self-operation of mining, and construction of the mining data centers. Yang says that this will increase the company’s market exposure and operational capacity leading to higher profit and sustainable development in future for BIT Mining.
On the other hand, BIT Mining has not been left out in experiencing some of these challenges. The US SEC accused the company of violating the FCPA on November 18. The charges included bribing the Japanese officials. BIT Mining also pleaded guilty to the charges and agreed to pay a $4 million civil penalty.
However, BIT Mining is interested in expansion. The acquisition of the Ethiopian data centers and mining machines is well in line with the strategy. It will assist in opening up and extending the mining business in certain areas. BIT Mining has plans to optimize its operations and respond to the sophisticated environment in the crypto space.
Therefore, the acquisition is significant for expanding the company’s mining capacities, as BIT Mining plans to achieve them. This effort is in line with the general management’s long-term plan to enhance the efficiency of the company’s main business processes and, consequently, boost the company’s profit margin. While regulatory challenges have posed hurdles, BIT Mining’s commitment to expansion and innovation positions it well for the future.
