The mining industry pattern may undergo great changes: Bit Mining, a listed company in the United States, acquires Bee Mining Machine

It has to be said that the bit mining industry is moving at full speed towards a new transformation and development direction, and this direction is - encrypted digital currency mining. Many years later, in the face of the mining industry landscape, Bit Mining will recall the farsighted decision made on April 5, 2021 - to acquire Bee Mining Machines. At that time, the mining industry pattern showed new vitality. Bitmain co-founder Wu Jihan announced in an open letter that he had reached a settlement with another co-founder Zhan Ketuan in a friendly and constructive manner. He resigned as Bitmain CEO and chairman. , At the same time, it also decided to separate its mining pool and mine business from Bitmain. However, when most people are paying attention to Bitmain's "gossip" and news of business changes, Bitmain has sensed a business opportunity. On the winter solstice of 2020, the news of a private placement of 20% of Bit Mining’s shares has aroused the attention of the industry——Good Luck Information Company used 356.04342 bitcoins and $11.5 million in cash as a consideration to obtain Bit Mining’s shares, although this additional issuance did not change the board of directors Structure, but it is the company's largest stock adjustment in the past five years. With the completion of the equity strategy layout, Bit Mining officially opened a new development direction. Zhu Jiaming: The "mining circle" needs to break through into the "mining industry" to form a computing power industry system: Jinse Finance live report, on August 22, at the "Global Blockchain Computing Power Conference and New Infrastructure Mining Summit" held in Chengdu, the economic Zhu Jiaming, an expert and chairman of the Academic and Technical Committee of the Digital Asset Research Institute, gave a speech on the theme of "Computing Power Revolution and New Wealth". Zhu Jiaming said that the essence of the computing power revolution is the expansion of the scale and speed of data-based information storage. In less than half a century, the storage unit has increased from KB to TB. Mining is a test area for computing power and algorithms. It is necessary to achieve a breakthrough from "mining circle" to "mining industry", build an infrastructure supporting the digital economy, and form and develop an industrial system for computing power. Future mining machine applications should be more intelligent , miniaturization, and popularization, and reduce energy consumption through computing power technology. [2020/8/22] Just one month after Wu Jihan announced his departure from Bitmain, Bitmining announced the acquisition of all BTC.com mining pool business, BTC.com domain name and BTC.com cryptocurrency wallet. Undoubtedly, the pool of spring water supplied by the traditional mining machine manufacturers such as Bitmain, Canaan, and Ebang International has been "ruled for many years". With the entry of Bitmining, it has finally been stirred up. up. The beginning of Bit Mining: Transformation The name of Bit Mining may sound unfamiliar, but if you mention its predecessor 500.com, I believe many people are familiar with it. On March 8, 500.com issued an announcement confirming that the company changed its name to BIT Mining Limited, and the stock code will also change from the original WBAI to BTCM, transforming into a world-leading encrypted digital currency mining company (carbon chain value injection) : The name change in English is planned to be approved at the shareholders' meeting on April 8, and is expected to come into effect on April 19). Some people may think that the company's transformation may be a little hasty, and they may just want to take advantage of the recent "Bitcoin price surge" hot spot, but this is not the case. TokenBetter officially launched TB Mining and started Staking mining: According to official news, TokenBetter announced that it will officially launch TB Mining at 14:00 (UTC+8) on July 21, fully opening a new era of Staking economy. The Staking launched by TokenBetter this time has an ultra-low participation threshold, rich returns, and multiple rewards. The number of TB credits on the TokenBetter platform is constant, the output of Staking is reduced by 5% every three months, the computing power continues to increase, the production capacity continues to decrease, the difficulty of mining is getting higher and higher, and the market value will inevitably increase. In addition, TokenBetter launched TB Mining and took a milestone step. Start Staking mining, which can reduce TB circulation, fix output, and stabilize market value. Through the Staking mining ecology, we will continue to seek in-depth benefits for users, attract traffic to feed back market development, and fully open the era of Staking Nuggets. [2020/7/18]According to public information, Bit Mining started researching the blockchain as early as 2018, published a blockchain white paper and gained an in-depth understanding of cryptocurrencies, exchanges and other related information, and went as far as North American mines to investigate It is worth mentioning that the company's previous acquisition of Lotto Interactive Entertainment has also started business transformation since 2019. Through the construction of a mine in Sichuan, it currently operates three big data centers, and its computing power accounts for the total Bitcoin network computing power. The ratio has exceeded 6%, and it has generated about 152.6 million Hong Kong dollars in revenue (as of the third quarter of 2020), which shows that its business model has matured. Sound | CoinDesk: Bitcoin mining is starting a new round of bidding war: CoinDesk published today "Bitcoin mining is starting a new round of bidding war" article said that as the price of Bitcoin rises, the operating efficiency of second-hand mining equipment is getting higher and higher. come higher. The bull market that started in mid-April has made miners more profitable to operate, so mining machines are more valuable. Prices for used mining machines have nearly doubled in recent weeks, with Bitmain’s old Antminers currently priced at $250 to $320. In addition to surging bitcoin prices, widespread expectations of cheap hydropower during China's abundant summer water resources may also be one of the reasons driving the growing demand for mining machines. Mining farm operators in southwestern China have previously estimated that more than 1 million machines will be operating in the region this summer. In addition, Coinprint mining pool Zhu Wei said that another driving factor for the growing demand for second-hand mining machines is new funds from newcomers. At the same time, 220,000 to 700,000 mining machines may be put into use this summer. Yang Zuoxing, founder of MicroBT, said that 1,000 to 2,000 units of the Whatsminer M20S launched in April will be shipped in May, but orders of more than 10,000 units will not be shipped until July and August. The first batch of Bitmain’s Antminer S17 and S17 Pro won’t ship until May, and these products are already marked as sold out. Although these new miners appear to be powerful, their payback time is still longer than that of second-hand miners, because they cost more compared to the bull market of 2017, when Bitcoin prices were lower. According to the analysis of TokenInsight mining analysts, miners also largely rely on the price of Bitcoin to determine their production scale. Unless the price of Bitcoin can be kept stable above $8,000, miners are unlikely to mass-produce the latest and more powerful Bitcoins. powerful device. These factors will lead to a new round of bidding wars in the Bitcoin mining industry. [2019/5/3] Not only that, since January this year, Bit Mining has begun to purchase Bitcoin mining machines on a large scale. It is reported that the company plans to purchase as many as 10,000 mining equipment this year. In early February, a final purchase agreement was reached for another 5,900 bitcoin mining machines, with a total amount of about 55.2 million yuan (about 8.5 million U.S. dollars), and the goods are expected to arrive by the end of April 2021. Later, it signed a mining machine purchase agreement with Bit Deer subsidiary to purchase 1,923 Bitcoin S17 spot mining machines at a consideration of approximately RMB 31.3 million (approximately US$4.9 million) and began to realize revenue in the mining business. News | A mine in the fjord area of Norway is now conducting green bitcoin mining business: According to coinjournal, the Lefdal mine in the fjord area of Norway has now become an underground data center for green bitcoin mining operations. Mathis Schultz, CEO of the mine, explained that the mine is an important part of operating a green bitcoin infrastructure and will use renewable energy to mine bitcoin. [2018/8/31] In fact, with the completion of the layout of mining pools and mines, Bit Mining has obtained a wealth of resources of new mining machines and second-hand mining machines, which also allows them to prepare for the full development of Bitcoin mining services. At present, Bit Mining owns more than 400 megawatts of its own mines, with obvious advantages in operation and maintenance costs. It can be seen that the transformation of Bit Mining to the blockchain and cryptocurrency industry is not a whim, but just conforms to this transformation trend. Bit Mining’s second trick: Acquisition As mentioned above, Bit Mining reached a share replacement agreement with Bit Deer’s subsidiary in February this year to fully acquire the BTC.com business, including mining pools, domain names and wallet businesses. You must know that BTC.com has long been ranked first in the mining computing power of the entire bitcoin network. This acquisition will undoubtedly make the bit mining even more powerful, and the blockchain business layout will be further expanded. As of mid-March, Bit Mining has a mining machine with a computing power of about 1,000 PH/s. According to the computing power of the entire Bitcoin network, the theoretical daily output can reach 6.39 Bitcoins, and the monthly output is about 200 Bitcoins. Cryptocurrency mining giant Hyperblock will acquire North American mining company: According to Reuters news today, cryptocurrency mining giant Hyperblock will acquire all shares of North American mining company CryptoGlobal, which is valued at $106 million in this merger. After the successful merger and acquisition, both parties to the transaction will apply for listing on the Canadian Stock Exchange in the name of "HyperBlock Technologies Corp." According to Business Insider, the new company will have 21,000 cryptocurrency mining machines spread across the U.S. and Canada. After that, Hyperblock will carry out services such as self-operated mining, mining machine hosting, server buying and selling, encrypted asset storage and trading. [2018/4/4] Another noteworthy acquisition transaction actually happened just one day ago. On April 5th, Bit Mining announced that it had signed a share replacement agreement with the shareholders of Bee Computing Hong Kong Co., Ltd., with a total value of 100 million US dollars. A total of 45,825,530 Class A ordinary shares were acquired as consideration for Bee Computing (Hong Kong) Co., Ltd., accounting for approximately 8.18% of the company's total issued share capital on March 31, 2021. According to the share swap agreement, after Bee Computing completes the reorganization and other customary transaction conditions are reached, Bit Mining will pay 16,038,930 Class A ordinary shares worth US$35 million to selling shareholders, and the first delivery is expected to be completed in the second quarter of 2021. After Bee Computing reaches the following four milestones, Bit Mining will pay 29,786,600 Class A common shares worth 65 million US dollars to the selling shareholders and the R&D team respectively: 1. Continue mass production of a certain scale of 7nm ASIC Bitcoin mining machines; 2. .Successfully developed and mass-produced 7nm ASIC Bitcoin mining machine with better power consumption and performance in a certain scale; 3. Successfully developed high-performance and energy-producing Ethereum ASIC mining machine; 4. Successfully developed high-performance and energy-producing Wright Coin ASIC mining machine. Some people may wonder why Bit Mining chose an "unknown" chip company, but is this really the case? In fact, the Bee Computing that Bit Mining acquired this time has "a lot of background". We found a familiar professional vocabulary in the above acquisition details: 7nm, indeed, as the most upstream mining machine manufacturer in the industry chain, Bee Computing was established in March 2018 and obtained the global semiconductor packaging and testing giant ASE Group very early. Investment, and jointly developed a 7nm Bitcoin mining chip with Taiwan MediaTek (MTK), which means that Bee Computing not only has the advantage of mining machine production capacity, but also has chip manufacturing capabilities. Manufacturer of mining equipment. More importantly, from the above acquisition details, we also found that Bee Computing has the research and development capabilities of the three mining machine product lines of Bitcoin, Ethereum, and Litecoin at the same time, instead of focusing only on Bitcoin mining machines. This model can not only expand Product line, but also can better diversify risks. From this point of view, Bitcoin Mining has seized the key "key point" of the entire mining industry chain, because for today's Bitcoin mining market (even in the broader smartphone and automobile markets), using It is not an exaggeration to describe it as "the one who gets the chip wins the world", because the world is currently facing a serious "chip shortage", which has caused serious delays in the delivery of mining machines. Bit Mining's acquisition of Bee Computing fully demonstrates its forward-looking industrial layout. Under the current market environment of soaring currency prices and hard-to-find machines, Bit Mining has obtained a stable, sustainable, and cost-controllable supply source. Yang Xianfeng, who has just been appointed as the CEO of Bit Mining, believes that in the long run, mining machine manufacturing ranks at the top of the "food chain" of the entire digital currency industry, and its position is very important. Among them, it not only obtains stable self-produced mining machines, but also occupies a relatively favorable position in foreign cooperation. In fact, some "veteran" mining machine manufacturers have also discovered that there is a "food chain" problem in the current digital currency industry. For example, since last year, Bitmain, Whatsmart and Canaan have announced the launch of independent mining business. After all, in the current situation of chip shortage, it is still a matter of whether there will be enough mining machines to be put on the market in the future. Unknown, and even some futures mining machines are scheduled for 2022. You will find that the acquisition of Bee Computing by Bit Mining at this time "just happens" to fill the production gap of traditional mining machine manufacturers, and the timing of entry is also very well-planned, coupled with sufficient funds and resource allocation, all these late-mover advantages It will further enhance the market competitiveness of Bit Mining, and it may even achieve corner overtaking on the digital currency mining ecological "track", surpassing those "old" mining machine manufacturers in one fell swoop, and completely changing the mining industry. After the acquisition of Bee Computing, Bit Mining has completed the layout of the entire mining industry chain from chip manufacturing, mining machine production to mining pools and mines, and terminal wallets. Generally speaking, mining belongs to the upstream of the cryptocurrency industry, and its technical support usually does not decline due to market turbulence, but the entry cost in this field is also relatively high, requiring greater capital and resource investment, so the layout of the entire industry chain is usually Only the most powerful "players" are eligible to enter - it is rumored that Bit Mining has planned to invest $30 million in Bee Computing to strengthen chip research and development. What will be the "next fire" of Bit Mining? If we look back at the stock price trend of Bit Mining from December 2020 to the present, we will find that after a series of actions such as the transformation and acquisition of Bit Mining, the market has given the best answer (data source: Google stock data, data extraction time: 2021 April 6). The data will not lie. During December 2020, the stock price of Bit Mining basically remained below $3, but after announcing the purchase of mining machines and the acquisition of the BTC.com business from February to March this year, its stock price soared all the way to a maximum of $35 , an increase of more than 9 times, the current market value of the company is about 1 billion US dollars.

Tags：

Dogecoin