BIT Mining Completed the First Phase of Acquisition in Ethiopia

Rhea-AI Summary

BIT Mining (NYSE: BTCM) has completed the first phase of its acquisition in Ethiopia, which includes a 35-megawatt operational crypto mining data center and 17,869 BTC mining machines. The company paid US$2.265 million in cash and issued 369,031,800 Class A ordinary shares to the sellers.

The second phase of the acquisition is expected to complete in March or April 2025, involving the transfer of remaining data centers. Upon closing, BIT Mining will issue an additional 45,278,600 Class A ordinary shares as consideration.

Positive

• Acquired 35-megawatt operational crypto mining data center
• Obtained 17,869 BTC mining machines
• Expanding operations into Ethiopia market

Negative

• Significant shareholder dilution with issuance of 369,031,800 Class A ordinary shares
• Cash expenditure of US$2.265 million
• Additional dilution pending with 45,278,600 shares to be issued in second phase

Insights

Financial Analyst

The $2.265 million cash acquisition and share issuance represents a strategic expansion into Africa's emerging crypto mining market. The deal structure, combining cash and equity, helps preserve BIT Mining's liquidity while the substantial share issuance of 369 million shares indicates significant dilution for existing shareholders. With a $40.3 million market cap, this deal materially impacts the company's capital structure.

The 35MW facility and 17,869 BTC miners provide immediate operational capacity, though profitability will depend on local electricity costs and BTC prices. Ethiopia's historically low electricity rates could provide a competitive advantage. The phased approach with the remaining facilities coming online in 2025 helps manage execution risk but requires monitoring construction progress and potential delays.

Tech Expert

The acquisition of 17,869 Bitcoin mining machines represents significant hash rate capacity, though the specific machine models and their efficiency metrics aren't disclosed. The 35MW infrastructure can support substantial mining operations, positioning BIT Mining competitively in the region. Ethiopia's cool climate could benefit mining operations by reducing cooling costs, a important factor in mining economics.

The phased implementation approach allows for operational optimization and potential adjustments based on initial performance data. The planned expansion in 2025 demonstrates a long-term commitment to scaling operations, though success will depend on maintaining competitive infrastructure and upgrading equipment to keep pace with network difficulty increases.

AKRON, Ohio, Dec. 9, 2024 /PRNewswire/ -- BIT Mining Limited (NYSE: BTCM) ("BIT Mining" or the "Company"), a leading technology-driven cryptocurrency mining company, today announced that it has completed the first phase of previously-announced acquisition of crypto mining data centers and Bitcoin ("BTC") mining machines in Ethiopia. To complete the first phase of the acquisition, the Company has made a cash payment of US$2.265 million and issued an aggregate number of 369,031,800 Class A ordinary shares to the sellers in exchange for a 35-megawatt operational and electrified crypto mining data center and 17,869 BTC mining machines. The second phase of the acquisition, which involves transfer of the remaining data centers to the Company, will close upon completion of construction of the remaining data centers, which is expected to occur in March or April 2025. Upon closing of the second phase, the Company will issue an additional 45,278,600 Class A ordinary shares as consideration.

About BIT Mining

BIT Mining (NYSE: BTCM) is a leading technology-driven cryptocurrency mining company with operations in cryptocurrency mining, data center operation and mining machine manufacturing. The Company is strategically creating long-term value across the industry with its cryptocurrency ecosystem. Anchored by its cost-efficient data centers that strengthen its profitability with steady cash flow, the Company also conducts self-mining operations that enhance its marketplace resilience by leveraging self-developed and purchased mining machines to seamlessly adapt to dynamic cryptocurrency pricing. The Company also owns 7-nanometer BTC chips and has strong capabilities in the development of LTC/DOGE miners and ETC miners.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Forward looking statements in this press release include, but are not limited to, statements on the closing of the second phase of the proposed acquisition. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Important factors that could cause BIT Mining's actual results to differ materially from those indicated in the forward-looking statements include, but are not limited to, any adverse change in the business and financial performance of the Company or the landscape of the cryptocurrency mining industry, the inability of the Company or the counterparty to satisfy the closing conditions of the proposed acquisition, and the occurrence of any event, change or other circumstance that could give rise to the termination of the agreement for the proposed acquisition. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For more information:

BIT Mining Limited
ir@btcm.group
Ir.btcm.group
www.btcm.group 

Piacente Financial Communications
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com 

View original content:https://www.prnewswire.com/news-releases/bit-mining-completed-the-first-phase-of-acquisition-in-ethiopia-302326141.html

SOURCE BIT Mining Limited

FAQ

What did BIT Mining (BTCM) acquire in Ethiopia?

BIT Mining acquired a 35-megawatt operational crypto mining data center and 17,869 BTC mining machines in Ethiopia as part of the first phase of acquisition.

How much did BTCM pay for the first phase of the Ethiopia acquisition?

BTCM paid US$2.265 million in cash and issued 369,031,800 Class A ordinary shares for the first phase of the acquisition.

When will BTCM complete the second phase of the Ethiopia acquisition?

The second phase of the acquisition is expected to complete in March or April 2025, upon completion of construction of the remaining data centers.

How many additional shares will BTCM issue for the second phase?

BTCM will issue an additional 45,278,600 Class A ordinary shares upon closing of the second phase.