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- Future Fintech recently acquired ownership of Nanjing Ribensi Electronic Technology Co., a Chinese mining farm
- The U.S. tech firm bought the Chinese Bitcoin miner for a notable value of $9 million
- The CEO of Future FinTech stated that the significant factor that directed the respective decision was the low cost of energy
Future FinTech is a publicly-traded software company based in New York. The term Fintech, also short for Financial Technology, refers to various modern technologies and software employed by entities that facilitate users with automated and refined financial services. In contrast to conventional banks’ concept, FinTech startups function in a very flexible and fast manner when it comes to executing fresh services based on wavering demands.
Future Fintech’s makes a grand entry into the mining network
Future Fintech is a primary blockchain e-commerce firm and a financial technology service provider incorporated in Florida. It recently acquired ownership of Nanjing Ribensi Electronic Technology Co. in its attempt to enter the space of Bitcoin mining.
As per the press release, the U.S. tech firm bought the Chinese Bitcoin miner for a notable value of $9 million. According to the agreement, FutureFinTech will be taking complete ownership of the entity’s mining operations, which consists of around 30,000 ASICs situated in the hydro-rich Sichuan region of China. However, the current staff of Nanjing Ribensi will carry on with the farms’ maintenance.
The CEO’s take on the respective acquisition
Shanchun Huang, the CEO of Future FinTech, stated that the major factor that directed the respective decision was the low cost of energy. He added that the farm would provide them with the facility to place advanced bitcoin (BTC, -0.62%) mining machinery. However, it will also enable a potential generation of good profits due to the anticipated low energy cost of the chosen mining farm. It employs native low cost of hydroelectricity to operate the mining machines.
As per the statement, the sale is likely to guarantee good profit targets ranging from $2 million to $4 million up to the year 2023. The press release also asserted that if the farm falls short of fulfilling these target numbers, then Nanjing Ribensi’s shareholders will be liable for making up the difference to the quoted figures.
In the time leading up to the acquisition, FutureFinTech published fresh shares to collect a total amount of $35 million, SEC filings highlighted. The company’s stocks soared on the release of the news but are since reconsidering this move.
Bitcoin miners witnessed their best month so far last March, yielding an enormous figure of over $1.5 billion in the form of revenue. As a result, the Bitcoin network’s mining difficulty also altered to a new record-high.
Future FinTech’s acquisition happens at a time when the interest, as well as the engagement from conventional companies towards Bitcoin and its generation of digital assets, is at its peak.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
