Bit Mining Limited announced that it has launched a $9.3 million registered direct offering to certain institutional investors. Bit Mining explained that the funds from the offering are intended to be used for infrastructure expansion and investment in new mining machines.
Bitmining will use the new capital for expansion, mining equipment, and improvements to the company’s working capital position
cryptocurrency mining businessBit Mining Limited(NYSE:BTCM) announced that it has entered into a securities purchase agreement with an institutional investor.Bit Mining is a leading crypto mining facility, a mining pools, and mining rig manufacturing (Bee Computing).
The company owns and operates Btc.com and its mining services include mining Bitcoin, Litecoin, and Ethereum. According to the prospectus, the latest offering of $9.3 million is expected to close on or about August 18.
“The company will purchase and sell, in registered direct sales, 15,566,665 American Depository Shares (ADSs) of the company, Series A warrants to purchase up to a total of 15,566,665 ADSs and Series B warrants at a total purchase price of US$0.60 per ADS and related warrant. Each ADS represents 10 shares of Bit Mining’s Class A common stock, par value US$0.00005,” the company detailed Wednesday.
The $9.3 million in financing will be used to expand operations and invest in mining machines. The funds will also be used to “improve our working capital position and (invest in) new business opportunities.”
Bit Mining’s stock price is down 97.72% from its all-time high recorded on March 7, 2014. Year-over-year data show that Bit Mining’s net income has declined 123.18%. Last year, Bit Mining explained that it was investing $9 million in the construction of a 100-megawatt (MW) mining farm in Kazakhstan.
Following that announcement, Bitmining moved 3,000 mining rigs from China to Kazakhstan in response to China’s crackdown on bitcoin mining. a week after moving 3,000 mining rigs, another 2,500 machines were moved to transcontinental landlocked countries in Central Asia and Eastern Europe.
Bitmining’s latest offering must be approved by the U.S. Securities and Exchange Commission (SEC). Bitmining will make a strategic business move in 2022 to expand its operations and join the many bitcoin mining operations purchasing new mining machines.
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