Future FinTech’s purchase is in line with the legacy technology and finance sector, having a growing interest in Bitcoin recently.
Future FinTech, a publicly traded software company based in New York, acquired Nanjing Ribensi Electronic Technology Co. in an effort to enter Bitcoin mining.
The U.S. technology company bought the Chinese bitcoin mining company for $ 9 million, according to a press release. Under the agreement, FutureFinTech will take full ownership of the company’s mining operations, which includes some 30,000 ASICs located in China’s water-rich Sichuan region, but the current Nanjing Ribensi team will continue to maintain the farms. Futura FinTech CEO Shanchun Huang said the low cost of energy was a factor in the decision.
The farm “allows us to deploy advanced bitcoin mining machines (BTC, -0.42%), but potentially generate profits due to the low energy cost expected from the target mining farm, as it uses low local cost of hydroelectricity to operate the mining machines, “he said.
According to the statement, the sale comes with guaranteed profit targets of between $ 2 million and 4 million by 2023. If the farm does not reach these numbers, shareholders in Nanjing Ribensi will make up for the difference, the press release says.
In the months leading up to the purchase, FutureFinTech issued new shares to raise a total of $ 35 million, the SEC filings show. The company’s shares jumped on the news, but since then I have redone this move.
Bitcoin miners had their best month last March, raising more than $ 1.5 billion in revenue. The mining difficulty of the Bitcoin network recently adjusted to a new historical record as a result.
The future acquisition of FinTech comes at a time when the interest of traditional companies in Bitcoin and its generation of digital assets has never been greater.