Chinese bitcoin miner BIT Mining raises $50 million to move overseas

BIT Mining, a publicly traded Chinese bitcoin miner, has raised $50 million in a private stock offering as it secures backup plans after China’s crackdown orders.

The New York Stock Exchange-listed firm said in announcement on Tuesday that it has entered a purchasing agreement with institutional and accredited investors for the issuance.

BIT Mining, which is headquartered in Shenzhen and formerly known as 500.com, said it plans to use the net proceeds to “acquire additional mining machines, build new data centers overseas, expand its infrastructure, and improve its working capital position.”

The $50 million private raise comes less than a month after its bitcoin mining facilities in China’s Sichuan province were forced to suspend operations due to the power cut ordered by the local government.

Through a controlled subsidiary in Hong Kong called Loto Interactive, BIT Mining owned three bitcoin mining sites with two that had been running before June 22 and a third one that was supposed to be operational in June. The now-shutdown facilities were said to have a capacity of 400 megawatts.

BIT Mining has already sent the first batch of its proprietary equipment to the neighboring country of Kazakhstan.

Shanghai-based The9 City has also signed an agreement with Russian colocation provider BitRiver to reserve 15 megawatts of mining capacity.

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