BIT Mining Ltd. (BTCM) stock prices were up 17.23% early in the trading day on May 27th, 2021, bringing the price per share up to USD$8.30 shortly after the trading day commenced.
Binding Agreement
The leading cryptocurrency mining company announced recently that it had entered into a binding investment term sheet. BTCM is set to collaborate with a Kazakhstan-based company to jointly invest in the opening of a cryptocurrency mining data center in Kazakhstan.
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Kazakhstan Mining Data Center
As per the details of the Term Sheet, BTCM is forecasting an investment totaling USD$9.33 million which will facilitate the joint construction and operation of the Kazakhstan Mining Data Center. Upon completion, The Kazakhstan Mining Data Center is expected to have a total power capacity of a substantial 100MW. As outlined in the agreement, BTCM will acquire an 80% equity interest in the Kazakhstan Mining Data Center, while the local partner will hold 20%.
Expansion of Signed Agreements
BTCM concurrently announced the signing of two service agreements for its proprietary mining machines. One of these deals was signed with the local partner mentioned earlier, while the other is another Kazakhstan-based company. As per the Service Agreements, the Operation Managers will provide BTCM with a comprehensive data center service package in Kazakhstan. This will include on-site machine hosting, broadband network support, security monitoring, server management, and support, as well as assistance for company maintenance.
Scope of BTCM
The company reported having cash and cash equivalents in the amount of USD$26.5 million as of March 31st, 2021. BTCM also reported restricted cash in the amount of USD$47.3 million. With the signing of the two Service Agreements, BTCM forecasts its total power capacity that it can allocate towards crypto mining in Kazakhstan will go as high as 60MW. The company will continue to have access to a total power capacity of 20mw as per the Service Agreements from July 1st, 2021 onwards.
Future Outlook of BTCM
Armed with a solid liquidity position and potentially lucrative new collaborative partnerships, BTCM is poised to capitalize on the opportunities presented to it to facilitate further growth. Current and potential investors are hopeful that the company will continue to leverage the resources at its disposal to usher in significant and sustained increases in shareholder value.