NIP Group Announces Closing of Mining Assets Acquisition

Rhea-AI Summary

NIP Group (NASDAQ: NIPG) has completed its previously announced acquisition of crypto mining assets from Apex Cyber Capital Limited and Prosperity Oak Holdings Limited. The transaction, which closed on September 5, 2025, involved issuing 119,553,439 Class A ordinary shares as consideration for mining machines with a combined hash rate of 3.11 EH/s.

The acquired assets are expected to produce approximately 60 Bitcoins per month. NIPG will continue hosting the machines in existing data centers and has established a digital computing division for operations management. Additionally, the company appointed Simon Ming Yeung Tang and Kee Wee Kiang Kenneth as new board directors to strengthen its crypto expertise.

Positive

• None.

Negative

• Significant shareholder dilution through issuance of 119,553,439 Class A ordinary shares
• Exposure to volatile cryptocurrency market and Bitcoin price fluctuations
• Integration risks associated with new digital computing division

Insights

Digital Asset Investment Strategist

NIPG expands into Bitcoin mining with 3.11 EH/s acquisition, potentially producing 60 BTC monthly, signaling strategic diversification from entertainment.

NIP Group has completed a significant acquisition of Bitcoin mining assets with a combined hash rate of 3.11 EH/s, marking a substantial pivot for this digital entertainment company. The transaction closed on September 5, using 119,553,439 Class A ordinary shares as consideration rather than cash, which preserves the company's liquidity while diluting existing shareholders.

The mining operation is projected to produce approximately 60 Bitcoins per month, which at current prices represents meaningful revenue potential. However, this production estimate assumes optimal operational conditions and doesn't account for upcoming Bitcoin halving events that would reduce mining rewards.

This acquisition signals a strategic diversification beyond NIPG's core digital entertainment business into the volatile but potentially lucrative cryptocurrency sector. The company has established a dedicated digital computing division to manage these assets, indicating a long-term commitment rather than a speculative move.

The company's forward-looking statements about "significant opportunities to optimize performance" and leverage this infrastructure for "AI and other compute-intensive sectors" suggests strategic positioning beyond mere Bitcoin mining. This multi-purpose approach to high-performance computing assets could potentially mitigate some cryptocurrency market risks while opening additional revenue streams.

The appointment of two crypto-focused directors further reinforces this strategic shift, bringing specific expertise in Bitcoin mining operations and corporate finance with cryptocurrency experience. This governance enhancement appears designed to provide specialized oversight for this new business direction.

Corporate Finance Analyst

This transaction represents a significant strategic pivot for NIPG, fundamentally altering its business model and capital structure. The issuance of 119,553,439 Class A ordinary shares constitutes substantial dilution for existing shareholders, though the exact percentage depends on the pre-transaction share count (not disclosed in the release).

The acquired mining assets generate an estimated 60 Bitcoins monthly, creating a new revenue stream entirely distinct from NIPG's digital entertainment core business. This diversification introduces both opportunities and risks - cryptocurrency mining profitability fluctuates with Bitcoin prices, network difficulty, and energy costs, none of which are addressed in the announcement.

The transaction structure is noteworthy - an all-stock deal preserves cash but transfers significant equity to the sellers, who may now hold a material ownership stake. The absence of transaction valuation metrics (dollar value of assets acquired, implied valuation multiples) makes it difficult to assess whether shareholders received fair value.

NIPG's recent headquarters relocation to Abu Dhabi provides context for this strategic shift. The multi-year agreement with the Abu Dhabi Investment Office suggests governmental support that could provide financial and regulatory advantages for this expansion into digital assets.

The appointment of Simon Tang and Kenneth Kee brings crypto-specific expertise to the board, suggesting NIPG is building governance infrastructure to support this new business line. Tang's investment banking background and Kee's operational mining experience complement each other, potentially providing balanced oversight for this strategic expansion.

Company Expands Board with the Appointment of Two Directors

ABU DHABI, United Arab Emirates, Sept. 09, 2025 (GLOBE NEWSWIRE) -- NIP Group Inc. (“NIPG” or the “Company”) (NASDAQ: NIPG), a leading digital entertainment company, today announced the completion of its previously announced acquisition of on-rack crypto mining machines (the “Products”) with an aggregate hash rate of 3.11 EH/s from Apex Cyber Capital Limited and Prosperity Oak Holdings Limited, to which Fortune Peak Limited assigned all of its rights, benefits and obligations under the Agreement (as defined below) to complete the transaction (together, the “Sellers”).

Pursuant to the definitive asset-purchase agreement (the “Agreement”) entered into on July 1, 2025, the Company issued an aggregate of 119,553,439 Class A ordinary shares to the Sellers as consideration for the Products. All closing conditions for the transaction (the “Transaction”) were satisfied in accordance with the Agreement, and the Transaction closed on September 5, 2025.

The Products, consisting of data center capacity with a combined hash rate of 3.11 EH/s, are currently utilized for Bitcoin mining operations with expected production of approximately 60 Bitcoins per month. The Company will continue to host the Products in their existing data centers and has established a digital computing division to manage the operations and maintenance for the machines after closing. The completion of the Transaction is expected to further support the Company’s expansion and growth in the crypto asset space.

In connection with the completion of the Transaction, each of Simon Ming Yeung Tang and Kee Wee Kiang Kenneth has been appointed as a director of the Company, effective immediately.

Hicham Chahine, Co-CEO of NIPG, commented, "The completion of this transaction marks a key milestone in our expansion into the crypto asset space and the establishment of our digital computing capabilities. These mining assets are now fully integrated into our operations, positioning us well to create additional value for our Company and stakeholders. Over time, we see significant opportunities to optimize performance, explore capacity enhancements and leverage this computing foundation to support emerging applications across AI and other compute-intensive sectors. We are also pleased to welcome two crypto-focused professionals to our Board, as we build out our digital infrastructure and further strengthen our governance."

Simon Ming Yeung Tang is an experienced corporate finance professional with over 15 years of expertise across investment banking, corporate law and senior finance leadership roles. He played a key role in the Cango transaction that transitioned Cango into the bitcoin mining sector. Simon was also CFO of two new economy companies in the Internet and new energy vehicle sectors in China. From 2010 to 2021, he was part of the APAC TMT investment banking team at Credit Suisse, and before that practiced as a corporate lawyer at Linklaters, qualified in both English and Hong Kong law. Simon holds a Bachelor of Arts in Jurisprudence from the University of Oxford.

Kee Wee Kiang Kenneth has been active in the bitcoin mining industry since 2022, with investments and operational experience across multiple jurisdictions. He has played an important role in scaling mining projects internationally and brings hands-on expertise in digital asset infrastructure and global mining operations.

The acquisition follows the strategic relocation of the NIPG's global headquarters to Abu Dhabi, enabled by a landmark multi-year agreement with the Abu Dhabi Investment Office (ADIO) announced in January. Under the agreement, NIPG has access to financial and non-financial growth opportunities over a four-year period. Over the agreement term, NIPG will contribute to local employment in the esports and gaming sector and increase its capacity across key business verticals in the region, including esports operations, creative studios, game publishing, events and talent management.

About NIP Group
NIP Group (NASDAQ: NIPG) is a global digital entertainment company driving the evolution of gaming and esports. With a diversified ecosystem spanning esports teams, arenas and events, content and influencer networks, game publishing, and hospitality, we engage hundreds of millions of fans and create immersive entertainment experiences. Operating across Europe, the Middle East, Asia and the Americas, we collaborate with leading gaming companies to push the boundaries of interactive entertainment and bring gaming to new audiences worldwide.

Safe Harbor Statements
This press release contains statements that constitute “forward-looking” statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” or other similar expressions. Among other things, the business outlook and quotations from management in this press release, as well as NIPG’s strategic and operational plans, contain forward-looking statements. NIPG may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about NIPG’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIPG’s growth strategies; its future business development, results of operations and financial condition; its ability to maintain and enhance the recognition and reputation of its brand; developments in the relevant governmental laws, regulations, policies toward NIPG’s industry; and general economic and business conditions globally and in the countries or regions where NIPG has operations; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIPG’s filings with the SEC. All information provided in this press release is as of the date of this press release, and NIPG undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:
NIP Group Inc.
Investor Relations: ir@nipgroup.gg
Public Relations: pr@nipgroup.gg

FAQ

What mining assets did NIP Group (NIPG) acquire in September 2025?

NIPG acquired crypto mining machines with a combined hash rate of 3.11 EH/s, capable of producing approximately 60 Bitcoins per month.

How did NIPG pay for the crypto mining acquisition?

NIPG issued 119,553,439 Class A ordinary shares to the sellers as consideration for the mining assets.

Who are the new directors appointed to NIPG's board following the mining acquisition?

NIPG appointed Simon Ming Yeung Tang, an experienced corporate finance professional, and Kee Wee Kiang Kenneth, who has been active in the bitcoin mining industry since 2022.

What is NIP Group's relationship with Abu Dhabi Investment Office (ADIO)?

NIPG has a multi-year agreement with ADIO announced in January, providing financial and non-financial growth opportunities over a four-year period, following the relocation of their global headquarters to Abu Dhabi.

When did the NIPG mining assets acquisition close?

The transaction closed on September 5, 2025 after satisfying all closing conditions in accordance with the Agreement.