Bit Digital, Inc. (Nasdaq: BTBT) has doubled down on its Bitcoin mining venture by agreeing a $14 million deal to acquire more mining equipment.
The Nasdaq-listed firm agreed a deal with unnamed investors to issue 4,344,711 ordinary shares at the price of $3.20 each, in exchange for new Whatsminer M21S Bitcoin miners.
Bit Digital Increases Bitcoin Hashrate
With Bitcoin adoption increasing along with the price, the Bitcoin mining industry is attracting more investment.
Bit Digital only started its Bitcoin mining operations in February 2020, and the public company has steadily grown its Bitcoin hashrate in an attempt to remain competitive.
Bit Digital’s new acquisition is expected to give the firm a total hashrate of 2,250 petahashes a second (PH/s). This is up from 310 PH/s when the company first launched, a 750% increase.
Commenting on the Bit Digital‘s latest move, CFO Erke Huang said the company now expects to gain a competitive edge in the Bitcoin mining industry, while also boosting its long term cash flow.
‘We are very pleased to announce these agreements to issue shares in exchange for itcoin miners,’ said Huang. ‘[This] will further consolidate our position among listed firms in the Bitcoin mining industry in terms of the operating hash rate capacity. The revenue and number of BTC earned by the company is expected to have a continuous increase in Q4 2020 with the new deployment of more miners.’
And Bit Digital doesn’t intend resting on its laurels, as the mining firm looks to keep growing and investing in the latest Bitcoin miners ‘to expand the scale of Bitcoin mining through the purchase of the most economic efficient miners,’ said the CFO.
Bit Digital’s growth in its hashrate capabilities is another small step towards eating away China’s mining dominance.
Only last month many Chinese miners had to switch their Bitcoin miners off. It was only a temporary measure due to the extended rainy season, but bigger mining firms are now looking outside China to set up mining facilities.
Bitcoin Maximalist recently reported on US mining firm Marathon Patent Group (Nasdaq: MARA) purchasing over 23,000 Antminer S19 Pros, the most profitable and powerful Bitcoin miners on the market.
Once Marathon has all the mining devices running it will give the Nasdaq-listed firm a total hashrate of 2.56 EH/s, making it the largest Bitcoin miner in North America by total Bitcoin hashrate.
Other Nadaq-listed Bitcoin miner, Riot Blockchain (Nasdaq: RIOT) recently bought 8,000 Bitmain Antminers S19 Pro Mining Rigs as it aims to up its Bitcoin hashrate in what is quickly becoming a competitive market.
The deal was worth $23 million and once Marathon has the Bitcoin miners installed it will give the Colorado-based mining farm a total hashrate of 1.55 EH/s.
Both Bitcoin mining firms have seen their share price rise significantly in the last 12 months. Marathon has seen its price rise by 130%, while Riot has almost doubled in value in the same time period.
The Bitcoin Mining Industry Is Just Getting Going
Like anything built around the Bitcoin infrastructure, the Bitcoin mining industry is young, competitive and growing at a rapid pace.
China leads the way and at 65% it dominates the Bitcoin hahsrate, but the US is eating away at China’s dominance, and the likes of Bit Digital, Marathon and Riot are the early frontrunners in the US.
But the Bitcoin mining industry is just getting going, and who would bet against the likes of Exxon, BP and Tesla getting into the mining game?
Three giant companies with a lot of cheap power at hand, and they would benefit greatly from producing Bitcoin hashrate.
Food for thought…
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.
