Bit Mining Limited has announced that it has entered a $9.3 million registered direct offering with specific institutional investors. Bit Mining explained that it aims to use the funds from the offering to expand infrastructure and invest in new mining machines.
Bit Mining to Use Fresh Capital for Expansion, Mining Rigs, and Improving the Firm’s Working Capital Position
The cryptocurrency mining operation Bit Mining Limited (NYSE: BTCM) has announced that it has entered a securities purchase agreement with institutional investors. Bit Mining operates crypto mining facilities, a mining pool, and mining rig manufacturing (Bee Computing).
The company owns and operates Btc.com and mining services include bitcoin, litecoin, and ethereum mining. According to the prospectus, the latest offering for $9.3 million will close on or around August 18.
“The purchase and sale of 15,566,665 of the company’s American Depositary Shares (ADSs), Series A warrants to purchase up to an aggregate of 15,566,665 ADSs, and Series B warrants to purchase up to an aggregate of 15,566,665 ADSs, at a combined purchase price of US$0.60 per ADS and associated warrants, in a registered direct offering. Each ADS represents ten Class A ordinary shares, par value US$0.00005 per share, of Bit Mining,” the company detailed on Wednesday.
The $9.3 million in funding will be used to expand operations and invest in mining machines. The capital will also go towards improving “working capital position and [investing] in new business opportunities.”
Bit Mining’s shares are down 97.72% from the all-time high recorded on March 7, 2014. Year-over-year data shows Bit Mining’s net income is down 123.18%. Last year, Bit Mining explained that it was investing $9 million into the construction of a 100 megawatt (MW) mining farm in Kazakhstan.
Following that announcement, Bit Mining moved 3,000 mining rigs from China to Kazakhstan following China’s crackdown on bitcoin mining. A week after it moved 3,000 mining devices it moved another 2,500 machines to the transcontinental, landlocked country located in Central Asia and Eastern Europe.
Bit Mining’s latest offering must be approved by the U.S. Securities and Exchange Commission (SEC). Bit Mining joins a slew of bitcoin mining operations making strategic business moves in 2022, expanding operations, and purchasing new mining machines.
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Jamie Redman
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