BIT Mining expands with new operations in Ethiopia

BIT Mining Expands Cryptocurrency Mining Operations in Ethiopia

BIT Mining, a publicly traded cryptocurrency mining company, has initiated plans to enhance its mining capabilities through acquisitions in Ethiopia.

On December 9, BIT Mining confirmed the completion of the first phase of its acquisition strategy, involving the purchase of data centers and Bitcoin (BTC) mining equipment in Ethiopia.

The initial announcement stated BIT Mining's intention to acquire data centers and BTC mining machines worth up to $14.2 million. The transaction secured an additional 51 megawatts of data centers and 17,869 Bitcoin mining machines. "The first phase of the deal is done," BIT stated.

The cash-and-stock transaction included $2.265 million in cash and 369,031,800 Class A ordinary shares to acquire a 35 MW cryptocurrency mining data center. BIT Mining also acquired 17,869 Bitcoin mining machines.

The finalization of the subsequent phases of expansion is projected for March or April 2025, encompassing the acquisition of the remaining data centers. The deal expects to materialize with the new data centers operational by late Q1 or early Q2 2025. Upon successful execution, the company intends to issue up to 45,278,600 BTCM shares to finance the expansion.

In addition, BIT Mining revealed its continued plans to merge-mine Litecoin (LTC) and Dogecoin (DOGE). This decision stems from significant profits generated by the company through self-mining LTC and DOGE in recent times.

As of November 27, 2024, BIT had mined a total of 84,485.42 LTC and 227,908,250.38 DOGE.

"The recent rally in Litecoin and Dogecoin, fueled in part by Elon Musk's influence and the changing regulatory landscape...has had a major impact on mining profitability," said Dr. Youwei Yang, BIT Mining's chief economist and vice president of mining.

LTC and DOGE prices have surged by 73% and 117%, respectively, over the past 30 days. Bitcoin, surpassing $100,000, has gained 31% during the same period and 126% over the past year. BTCM stock has also exhibited a 29% increase in the past week.