BIT Mining Expands Crypto Operations in Ethiopia with $2.26M Acquisition of Data Centers

BIT Mining, a leader in the world of crypto mining, has made an important move towards strengthening its position in Ethiopia, where it’s already been operating for years. It’s a significant decision beyond the dealings of a single company as it shows the trends and moods in the industry more broadly.

For a while now, the mining part of the crypto industry has been expanding and becoming a prerogative of a few companies with the technological capabilities to grow in this field. This expansion is a part of such a trend.

What Happened?

BIT Mining finished the first phase of its purchases in Ethiopia. It purchased 35 MW of mining capacity and nearly 18,000 BTC mining machines for a $2.265 million cash payment. The company also acquired 369 million shares as a part of the same deal.

There are plans for it to expand further in the next phase of the deal, with an additional 51 MW of data centers scheduled to be operational by early 2025. It’s a crucial step in the company’s plan to expand its operations.

A New Era for Crypto Mining

Crypto mining has gone a long way in the last couple of years. It started with many more users learning how to mine crypto and setting up their operations to do so. However, the industry soon changed, and the technology needed to mine crypto became available mostly to large companies such as BIT Mining.

The computer power needed to run a mining operation has also increased greatly, along with the electric power it consumes. Acquisitions such as these show that a new era of crypto mining is now here and will become increasingly competitive and complex as new players move in.

What’s BIT Mining?

BIT Mining is a crypto mining company started in Ohio that operates Bitcoin mining centers all over the world. Their services also include repairing and managing the equipment used for crypto mining. It got into the business by purchasing Bee Computing, which specializes in the manufacturing of high-performance seven nano-meter crypto mining machines.

The company is publicly traded, and it currently has a Market Cap of $36.89 million. At the time of this writing, a share is worth $3.34. It also holds 7 nm BTC chips and has strong capabilities in LTC/DOGE miner and ETC miner development.

Adding LTC and Doge to the Portfolio

Alongside the expansion into Ethiopia and the creation of the new data centers, the company has also expanded its crypto portfolio by moving into LTC and Doge. According to a recent announcement, in the past year, BIT Mining reported that it had mined a total of 84,485.42 LTC and over 227 million DOGE.

The prices of these coins have surged recently as a part of the governmental change in attitude towards crypto. Litecoin and Dogecoin prices have risen by 73% and 117%, respectively, just in the last 30 days.

The Move towards AI

The decision to expand mining capacities happens at an interesting time for the industry. Many companies working in the field aren’t following along with BIT Mining and their decision to double down on mining. In fact, they are moving their resources that are otherwise used for mining towards AI. It’s a smart move as AI is all the rage in the investment world, and it requires similar computing power.

There are also many deals between mining companies and AI providers that share the equipment and the profits made from it in various ways. The decision made by BIT Mining becomes even more significant in this context.

The Changing Crypto Landscape

It’s already obvious that the crypto landscape is dynamic and that it has gone through phases over the years. Many feel that we’re in the midst of one such change and in the beginning of a new phase. That’s noticeable in the change in public attitude towards crypto as well as a change in the governmental stance towards it.

This has led to traditional financial institutions such as pension funds and stock markets accepting crypto. The new US administration is also eager to incorporate crypto policy into their plans, and the market has adjusted based on it.

To Sum Up

 BIT Mining has expanded its business by purchasing data centers and mining equipment in Ethiopia. The deal was worth $2.265 million at this stage, with the additional stages being announced to take place in 2025. It’s an interesting move for the wider crypto industry.

There are crypto mining companies that are moving away from the industry and focusing on AI, but BIT Mining is all in when it comes to expanding its operations. This happens during a crypto boom and increased interest in crypto by both investors and governments.