BTC Digital Expands Mining Infrastructure with Addition of 220 Bitcoin Mining Units
Summary:
BTC Digital, previously known as Meten EdtechX Education Group, has purchased an additional 220 Bitcoin mining units, increasing its total to 2,174 machines with over 230PH/s of computational power. The company, recognized as a leading English language training service provider, transitioned into Bitcoin mining in late 2021. CEO Alan Peng emphasizes the recent purchases and plans for additional mining units will improve the company's financial state and enhance shareholder value.
On November 3, BTC Digital, the Chinese firm, declared its procurement of additional 220 Bitcoin (BTC) mining machines, bolstering their total count to 2,174 with a combined computational power exceeding 230PH/s. The newly secured units are slated to be operational by November end. This transaction involved two distinct third parties who traded Bitmain Antminer S19j Pro units for 276,572 of the company's ordinary shares, valued at around $968,800. Prior to rebranding in August as BTC Digital to mirror its core operations more accurately, the organization was known as Meten EdtechX Education Group. As per its Nasdaq listing, the company has been identified as a notable entity providing English language training services across China, with multiple learning centers and online as well as metaverse-based training offerings. In stark contrast to this image, a Reddit thread initiated on November 11, 2022, implies a sudden halt in the company's teaching operations. Portfolio expansion into Bitcoin mining commenced for the company at the closing of 2021, when it installed 1,482 miners, as attested by an unmarked profile on its website. These mining operations, situated in Pennsylvania and Tennessee in the USA, were entrusted to a third-party operator. Alan Peng, CEO of BTC Digital, in relation to the company's recent acquisition noted that ongoing purchases and plans for more mining infrastructure are envisaged to enhance their fiscal performance and shareholder value. Observing a low share price of $1.79 on September 26, the company's market cap shot up to $3.1 million by September 28, accompanied by rising activity post the change of its ticker from METX to BTCT. BTC Digital's shares are valued at $3.66 at present. With the fluctuating valuation of the bitcoin mining sector, public miners currently trade at a P/S ratio of 2.92, with potential to exceed 7 in the forthcoming bull market, projecting potential stock valuation surges. As of the second half of 2021, China's efforts to regulate domestic Bitcoin mining proved to be less effective than intended, despite tightened regulations.
Published At
11/3/2023 7:00:00 PM
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