BIT Mining Raises $50 Million in Private Placement to Expand Overseas

China-based crypto mining firm BIT Mining has raised $50 million in a private placement to build new data centers, buy additional equipment and expand its operations overseas. The publicly traded company was severely impacted by China’s crypto mining ban, which hit its facilities in Sichuan last month.

BIT Mining Announces Fund Raising in a Private Placement

On July 12, BIT Mining issued a press release that indicated the firm had entered into securities purchase agreements with select institutional and accredited investors to raise $50 million in funding. The Shenzhen-based company, formerly known as 500.com, intends to use the net proceeds to acquire additional mining equipment and set up new data facilities overseas. 

US$50 Million Private Placement! Ready for greater expansion!

— BIT Mining Limited (@BITMining_BTCM) July 13, 2021

The latest fund-raising comes less than a month after the firm was forced to shutter its crypto mining facilities in Sichuan due to China’s crackdown on miners. As part of the new regulations, provincial governments in the country were ordered to discontinue power supply to companies engaged in mining cryptocurrencies.

The NYSE-listed firm owned three Bitcoin mining sites, of which two were already operational, and a third one was supposed to commence activities in June. These facilities were estimated to have a capacity of 400 megawatts.

Post the closure of its operations in Sichuan, BIT Mining has dispatched more than 300 mining rigs to Kazakhstan with plans to ship another 2600 machines before July 1, 2021. 

Mining Ban Brings a Windfall for North American BTC Miners

Like many outlawed miners, BIT Mining is also looking into North America for its overseas expansion. The company is particularly interested in the state of Texas due to its lower electricity prices. Reports suggest that BIT Mining may invest up to $26 million in the state to build a 57-megawatt mining center.

Crypto mining equipment makers have also acknowledged the ongoing shift in the industry. Edward Lu, senior vice president of Canaan Inc, a Chinese manufacturer of mining equipment told Reuters in May that going forward there should be a focus on developing markets like Kazakhstan, Canada, and North Europe “where energy resources are abundant and cheap, while regulations are clear and predictable.”