BIT Raises $50 Million To Help Bitcoin Mining Expansion Out Of China

BIT Mining announced a raise of around $50 million for the company to expand and move its operations out of China.

BIT Mining, a bitcoin mining company and owner of the BTC.com mining pool, has announced that it has reached securities purchase agreements with select investors to raise $50 million in a private placement.

Under the terms of the placement, which will not involve a public offering and is expected to close around July 16, 2021, BIT Mining will issue 100 million Class A ordinary shares at a purchase price of $5 per ten shares.

Already included in the price is one warrant per share, which investors can use to purchase additional shares later. The warrants will have a term of three years and will be exercisable six months following their issuance date, at $6.81 per ten shares. Furthermore, upon the satisfaction of certain undisclosed conditions, an investor would be able to convert ten shares into one “American Depositary Share” (ADS) of the company.

BIT Mining plans to use the proceeds of the private placement to expand its bitcoin mining operations worldwide. After the recent bitcoin crackdowns in China, the company has devised an “overseas deployment strategy,” which dictates how it plans to move its operations to more welcoming countries. BIT started moving part of its mining rigs to Kazakhstan in June, having made some investments in bitcoin data centers in Texas at a similar time.

Besides aiding with BIT’s overseas deployment strategy, the offering, whose sole placement agent is H.C. Wainwright & Co., will also allow the bitcoin mining firm to acquire additional mining machines, build new data centers, expand its infrastructure and improve its working capital position. Consequently, BIT might further increase the hash rate capacity of its BTC.com mining pool, which currently accounts for over 11% of the Bitcoin network’s total hash rate.