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 utilize the new capital for expansion, mining rigs and improving the working capital position of the firm
Cryptocurrency mining operation Bit Mining Limited (NYSE: BTCM) has announced that it has entered into a securities purchase agreement with institutional investors. Bit Mining operates crypto mining facilities, a mining pool, and mining rig manufacturing (B 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 American Depository Shares (ADS) of the Company, Series A warrants totaling 15,566,665 ADS, and Series B warrants totaling 15,566,665 ADS, at a combined purchase price of US$0.60 per ADS and associated warrants, a Registered Direct In the offering. Each represents ten Class A ordinary shares of ADS Bit Mining, at US$0.00005 per share,” 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.”
Shares of Bit Mining are down 97.72% from an all-time high recorded on March 7, 2014. The year-on-year data shows Bit Mining’s net income is down 123.18%. Last year, Bit Mining reported that it was investing $9 million in 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 US Securities and Exchange Commission (SEC). Bit Mining joined bitcoin mining operations in 2022 by taking strategic business moves, expanding operations, and procuring new miners.
