The firm traded 26,000 BTC miners to reach a hash rate of 549 PH / s. The acquired equipment will deploy its activities in the cities of Xinjiang, Sichuan, and Gansu.
Video game operator, The9 Limited, acquired a license in China to distribute Blizzard’s World of Warcraft and signed five agreements to earn 26,000 Bitcoin (BTC) mining equipment. With this agreement, the company sets its plan to enter the cryptocurrency mining business.
The9’s ambitious plan is to create a hash rate of approximately 549 petahashes per second (PH / s). It aims to achieve a mining capacity of 0.36% of the global computing power of the Bitcoin network, as the company points out in a statement published on January 25.
The Nasdaq-listed company signed agreements with industry insiders like Jianping Kong and four other former executives of the ASIC manufacturer Canaan to achieve its goals. The signed documents explain that The9 will pay for the equipment with class A ordinary shares to assign to each of the machines’ owners.
The company previously indicated that the former Canaan executives would receive more than 8,000,000 Class A common shares and guarantees in exchange for the mining equipment. These machines will now be part of NBTC Limited, the new subsidiary with which The9 will test itself into the cryptocurrency mining environment.
Xinjiang, Sichuan, and Gansu will see all of these mining machines’ installment.
Jun Zhu, president of The9, said that the plan is to consolidate a mining farm with a successful capacity of producing between 8% and 10% of the world computing power of BTC, 10% of the global hash rate of Ethereum, and 10% of Grin’s overall hash rate.
Once all the agreements signed with the former Canaan executives concrete, The9 expects to obtain approximately USD 34 million in consideration.
The9: The Company is Among the 84 Winners of the Stock Trading that Day
The9’s deals come two months after noticing a market capitalization deficiency from Nasdaq’s rating division. It was a warning that the firm did not meet the requirement of maintaining a minimum market capitalization of $ 35 million.
The notice stated that, according to Nasdaq rules, the company has a period of 180 days, or until May 11, 2021, to meet the minimum market capitalization requirement back again.
After announcing its plan to consolidate a mining farm for bitcoin and other cryptocurrencies, The9’s shares rose as much as 20.8% during Monday’s trading session in the United States. The company is on the list of the 84 winners of the stock trading that day.
The turn shows similar moves that the various U.S. publicly traded companies previously made to join the Bitcoin mining world amid the 2017 BTC price rally, companies like Bioptix, which changed its status to the Riot Blockchain. The company renounced to the biotech sector to play its cards in favor of the blockchain industry.
As The9 consolidates its new business, Bitcoin mining concentration in China is gradually and steadily decreasing. The reason is that the industry is growing in other territories, including the Nordic countries.
By: Jenson Nuñez
