BIT Mining Limited (NYSE: BTCM), a technology-driven cryptocurrency mining firm, announced that it has “strengthened” its collaboration with Viking Data Centers, LLC.
BIT Mining Ltd said it will increase its investment in the Ohio crypto mining data center, which is being developed with Viking Data Centers, to add “up to 65 megawatts” of power capacity in addition to “the 85MW per the original design, bringing the Ohio Mining Site’s total planned power capacity up to 150MW.”
As previously reported, the firm entered an agreement with Viking Data Centers on September 22, 2021 to establish the Ohio Mining Site. BIT Mining decided to strengthen its collaboration with Viking Data Centers and “increase the Ohio Mining Site’s size and total power capacity based on the company’s assessment of the current business and regulatory environment, as well as the strength of the Ohio Mining Site development team and the project’s anticipated cost efficiency.”
The Ohio Mining Site is scheduled to be “completed by March 2022.”
The update also mentioned that BIT Mining will increase its investment by around $11 million, $9.8 million of which will be “paid in cash” and “the remaining $1.2 million, payable to Viking Data Centers will be settled either in cash, or in the form of Class A ordinary shares, par value $0.00005 per share of the Company, at the Company’s discretion.”
Upon the execution of the increased investment, the firm’s equity interest in the Ohio Mining Site will be “increased to 55%, and Viking Data Centers will hold the remaining 45%.”
The increased investment will be directed towards funding “the buildout of the 65MW of additional power capacity.” This will be “developed in two phases, with 25MW in the first phase and 40MW in the second.” The parties currently expect to “reach these power capacity milestones by February 15, 2022 and March 31, 2022, respectively,” the announcement noted.
The transactions “contemplated by the Increased Investment are subject to customary closing conditions,” the update confirmed.
The firm said it plans to allocate additional resources to “developing the Ohio Mining Site, in light of its better cost control and operational efficiency.” The firm has also “terminated its Texas cryptocurrency mining data center cooperation with Dory Creek, LLC, and will limit power capacity at its Kazakhstan cryptocurrency mining data center to 40MW, to optimize the cost-effectiveness of its data center deployment.”
Upon completion of the crypto mining data centers in Ohio and Kazakhstan, BIT Mining expects that, by March 2022, its cryptocurrency mining machines “will have access to a total power capacity of up to 190MW.”
“The progress made to date with our global expansion strategy has been very encouraging,” stated Xianfeng Yang, CEO at BIT Mining.
Yang added that their multi-site approach and geographic diversification has offered them with more flexibility to shift resources and capitalize on regions with “more favorable market dynamics, and over time, generate greater returns for stakeholders.”
He also mentioned:
“We will continue to execute on our plan, investing in technology, innovation and high-quality mining resources around the world, while building a strong foundation across the cryptocurrency ecosystem.”
Recent Updates
- The Company entered into an alliance with the Hong Kong University of Science and Technology (HKUST). The Company expects the alliance to “provide it with access to … research, and over time, help propel the overall development of the blockchain industry.” As part of the alliance, BIT Mining will “provide internship programs for HKUST students, enhancing its talent pool with the potential industry leaders of tomorrow.”
- The Company invested in PTE Inc., a blockchain gaming firm. PTE Inc. specializes in developing “high quality blockchain-based games, providing gamers with non-fungible tokens (NFT) as in-game rewards. PTE Inc.” Its known for its self-developed title, Idle Mystic, the first 3D NFT game, which has gained over 60,000 players since its launch in August of this year.