Bit Digital, Inc. (Nasdaq: BTBT), has inked a purchase agreement with some unnamed foreign investors for the acquisition of over $13k worth of sophisticated bitcoin mining equipment in exchange for 4,344,711 ordinary shares at the price of $3.20 per share, according to a press release on November 11, 2020.
Bit Digital Increases Bitcoin Mining Power
As bitcoin mining difficulty continues to increase, as the price of bitcoin (BTC) aims for the moon once again since the 2020 bull run, Bit Digital, a United States-based crypto mining startup is investing heavily in sophisticated miners in a bid to remain competitive.
As stated in its press release, Bit Digital, a Nasdaq listed firm that started its mining operations in February 2020, has signed a strategic agreement with foreign investors to purchase $13,903,088 worth of bitcoin mining equipment with 4,344,711 of its ordinary shares at the rate of $3.20 per share.
With bitcoin adoption rate increasing steadily, as a vast array of institutional and retail investors are now seeing the once criticized flagship cryptocurrency in a positive light, Bit Digital hopes to significantly boost its hash power with its latest acquisition, from the current 1,250 petahashes per second (PH/s) to 2,250 Ph/s.
Bit Digital claims it has been making steady progress in its business since commencing operations last February with a hash power of less than 310Ph/s, which it successfully increased to 1,250 Ph/s by September 2020.
Notably, the firm has hinted that it’s not relaxing on its oars just yet, as 2000 pieces of its previously purchased M21s miners will be shipped to the U.S. before the end of November 2020.
Commenting on the latest development, Erke Huang, the financial officer of Bit Digital reiterated that the firm expects the new acquisition to give it a competitive edge in the mining ecosystem, while also boosting its revenue in the long run.
“We are very pleased to announce these agreements to issue shares in exchange for bitcoin miners, which 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.”
The year 2020 has been a relatively good year for firms in the bitcoin mining ecosystem. As BTCManager informed earlier in August 2020, the share price of Riot Blockchain and Marathon Patent has seen a significant increase this year.
It’s worth noting that some governments have started joining the digital revolution powered by bitcoin. In September 2020, the government of Kazakhstan announced plans to pump in $714 million into its bitcoin mining industry and Venezuela has also legalized bitcoin mining operations.