Bit Mining to raise $50M to fund out-of-China expansion

Bit Mining to raise $50M to fund out-of-China expansion

Chinese Bitcoin mining company, Bit Mining, has reportedly raised $50 million to finance its relocation out of China.

In a Monday announcement, the NYSE-listed firm disclosed that it had entered into an agreement with some accredited investors to raise the said amount from the sale of 100 million shares and warrants. Bit Mining will be offering 100 million Class A ordinary shares in a private placement. The price tag has been pegged at $5 per 10 shares. Each share carries a warrant that allows investors to purchase additional shares in the future. The warrants will be exercisable six months from the date of issuance at $6.81 per 10 shares.

The company intends to use the net proceeds of the private placement to build new data centers overseas, buy new equipment, and expand its infrastructure.

Last month, Bit Mining’s Chinese operations were suspended in the Sichuan province. Its move to expand out of China is undoubtedly in response to the government’s ongoing clampdown on crypto mining.The consequence of China’s mining crackdown has seen many Chinese miners seek more favorable markets elsewhere, with Texas being a popular destination because of its cheap electricity.

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