NIP Group, the parent company of the famous esports team Ninjas in Pyjamas, has announced ambitious plans. The firm is known for its successes in games like Counter-Strike. It revealed a significant NIP Group’s Bitcoin mining expansion. The goal is to increase its monthly production to 160 BTC, valued at over $16 million at current prices.
This move raises the company’s total hash rate capacity to 11.3 EH/s. This represents a drastic leap from its previous target of 60 BTC monthly and its 3.11 EH/s in July. The expansion is achieved through the acquisition of new mining rigs. The combined capacity of the new equipment is 8.19 EH/s. The transaction will be paid for by issuing over 314 million Class A ordinary shares. This deal with the sellers, which include Apex Cyber Capital and Prosperity Oak Holdings, is expected to close in December.
Hicham Chahine, co-CEO of NIP Group, served as the spokesperson for the news. Chahine described the move as a “natural extension” of their current disciplines. He stated that the influx of Bitcoin into the company treasury will fund key strategic investments. These investments include AI computing and artificial intelligence applications within video games. It will also boost their fan loyalty platform, DOJO, and other emerging technologies.
Can BTC mining save its stock price?
Furthermore, NIP Group clarified its treasury strategy. The primary focus is to increase its Bitcoin holdings and hash rate as much as possible. The firm only plans to sell BTC if it is “appropriate” according to market conditions. Sales would be used strictly to cover operational costs or finance future business expansions. However, the news failed to boost its stock (NIPG). The company debuted on the stock market last year at $10 per share. The stock price fell 5% during the day this Tuesday, trading at $1.61.
NIPG’s stock has accumulated a decline of over 87% from its all-time high. Despite its poor stock performance, the NIP Group’s Bitcoin mining expansion is significant. This move positions the firm as the 12th largest Bitcoin miner among publicly traded companies, according to hash rate data. The closing of the acquisition in December will be key to consolidating this new operational capacity and its innovative technological integration strategy.
