Shenzhen-based crypto mining firm, Bit Mining, is raising $50 million to fund an expansion out of the Chinese market.
Announced on July 12, the firm has entered into an agreement with select institutional and accredited investors to raise $50 million through a private placement.
Bit Mining is raising the funds in response to the Chinese Communist Party’s crackdown on crypto mining in May, noting plans to “acquire additional mining machines, build new data centers,” and expand its infrastructure overseas.
US$50 Million Private Placement! Ready for greater expansion!
— BIT Mining Limited (@BITMining_BTCM) July 13, 2021
Bit Mining is owned by NYSE-listed Chinese lottery service provider 500.com and operates the major mining pool, BTC.com.
As part of the private placement, Bit Mining will offer 100 million Class A ordinary shares at a purchase price of $5.00 per 10 shares.
Each share comes with a warrant that investors can redeem to purchase additional shares in the future. The warrants will have a set term of three years