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- The gaming company, The9 Limited, reveals plans to acquire Bitcoin miners’ stash.
- If the purchase is successful, the company would have an additional mining power of 0.1 exahash per second.
- The recent deal is possibly one of the company’s significant deals in the past.
A well-known gaming company, The9 Limited, headquartered in Shanghai, China, has signed a memorandum of understanding (MoU) with an unknown entity to acquire Bitcoin mining rigs. This could reinforce its mining prowess to a total of 0.22 exahash per second.
The popularity of Bitcoins led to deal finalization
Ever since the high profile investment of buying $1.5 billion worth of Bitcoins by Tesla and similar MicroStrategy investments in the past months, its price has breached all-time highs. Mining rigs are specialized apparatuses consisting of several high-end GPUs that process several hashes per second to verify a block being added to the Bitcoin blockchain. A correct verification would mean the person/node would be rewarded with a certain amount of Bitcoins. This makes the notion of mining very lucrative, and several institutional and amateur miners vie for a share in this highly competitive landscape.
Naturally, the higher the processing power, the higher is the probability of landing on the correct solution to the cryptographic problem. Thus, several companies invest large sums of money in this whole operation.
Acquisition through a stock deal
The9, a company known for the release of World of Warcraft in China, has signed an MoU with an anonymous and unrelated mining equipment owner to purchase 2,000 new rigs at the cost of approximately $6 million. The rigs, however, would be swapped for 8,127,390 class A shares of the firm, each costing about $24 over the next six months. However, the number of issued shares could be reassessed over time.
The new rigs are of the Canaan Avalonminers brand, which gives the firm an additional hash rate of 0.1 exahash per second. The9 has also publicly stated that it has entered into other MoUs where the company had purchased 12,246 rigs at an undisclosed cost, providing an additional hash rate of 0.288 exahash per second. Thus, its gross processing power is now at 0.388 exahash per second.
The new purchase by The9 is a solid investment plan and probably an eye-opener for other gaming companies to follow in its footsteps.
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.
