Crypto Miner BIT Mining Raises $50M through Private Placement to expand its Mining Business Abroad

The cryptocurrency miner BIT Mining Limited, a Shenzhen-based company, announced that it will raise $50 million through private placement to expand its crypto mining business to overseas markets.

According to an official statement released on July 12, BIT Mining Limited, listed on the New York Stock Exchange in the United States under the code "BTCM", has signed a registration agreement with qualified investors. Reportedly, the completion time of the private placement is estimated around Friday, July 16. Meanwhile, the New York investment bank, H.C. Wainwright & Co., will act as the underwriter of the issuance.

Investors can purchase equity certification for three years and can be exercised six months after the issuance date. This equity certification gives the company the ability to purchase 100 million Class A common shares issued by BIT Mining at a purchase price of $5.00 for every ten shares, with an exercise price of $6.81 per 10 shares of Class A common stock.

The funds raised this time will be used to purchase additional crypto mining machines, build new data centres overseas, expand their infrastructure and facilities, and improve their working capital conditions to deal with China's intensified law enforcement against domestic Bitcoin mining activities.

Since the Chinese government implemented a series of solid suppression on virtual currency transactions and related mining work, BIT mining is not the first to take measures. As reported by Blockchain.News on July 6, IBC Group announced to terminate their crypto mining operation and facilities across China due to the recent clampdown from the Chinese authorities.

BIT Mining is owned by 500.com, a Chinese lottery service provider listed on the New York Stock Exchange, and operates the entire mining pool business under BTC.com, including the domain name BTC.com.

The Acquirer recently also completed an acquisition from Bee Computing, a 7-nanometer cryptocurrency mining machine manufacturer, to help it improve the integrated services of cryptocurrency mining, mining pools, and data centre operations and strengthen its competitive position.