Chinese gaming company wants 10% of Bitcoin computing power, share rises
The share price of a Chinese gaming company The9 suddenly rose 87% yesterday. The company announced that they are going to start mining crypt currency such as Bitcoin.
Bitcoin mining company
The9 Ltd. is a Shanghai based gaming company. It was founded in 2004 and also listed on the NASDAQ. They once had an exclusive license for World of Warcraft in China.
On Monday, this company announces that it has signed a „legally binding investment form“ with a number of former manufacturers of bitcoin mining rigs. These include a number of directors of Canaan Creative, namely Sun Qifeng, Zhang Li and Kong Jianping.
„We will assist The9 in purchasing mining rigs, including AvalonMiners, AntMiners, WhatsMiners and Ipollo-miners, and build a professional team to focus on cryptocurrency“.
The9 is going to issue shares to the former directors of Canaan. They will help The9 develop everything around the minus of crypt currency (and therefore most likely Bitcoin).
The application filed with the SEC states that the managers will, among other things, be involved in the purchase of the mining rigs.
Increase in shares
If everything goes smoothly, The9 says it hopes to raise $34 million. With this they are going to set up a new subsidiary called NBTC Limited.
„Our goal is to build cryptomining rigs for The9 that will contribute 8% to 10% to the global computing power bitcoin“.
JUN ZHU, CEO AND DERICTEUR OF THE9
Following the announcement, The9’s share increased by as much as 87%, making the company’s market capitalization currently $58 million.