China is considered one of the most important players in the cryptocurrency market. Therefore, more and more Chinese companies, who have nothing to do with them, are investing in Bitcoin mining.
Notably, the ongoing Bitcoin run appears to have encouraged these companies to make large investments. Mainly in Bitcoin mining.
For example, baked goods and tea, emergency rescue and online lotteries are some of the products and services offered by Chinese companies listed in the United States. Who have turned to bitcoin mining in recent months. To capitalize on the current bull run.
This is not just short-term opportunism. These companies are well positioned to rapidly expand the mining industry.
In this regard, Ethan Vera, CEO of the cryptocurrency mining company Luxor, expressed:
These companies’ connections with Chinese Bitcoin mining companies, local hosting mining sites, and state power companies. They give them an advantage over their competitors.
In addition, he added: «Some of the companies are partly owned by the Chinese government. They could obtain permits to operate in areas rich in water or economic offers, with state electric companies».
Chinese companies are turning to mining
For example, Shenzhen-based online sports lottery company 500.com. It has signed contracts with the State Grid Corporation of China, a state power company. To enjoy discounted electricity for your data centers.
For his part, Yulong Liu, CEO of Babel Finance, one of China’s largest cryptocurrency lenders, said:
“500.com Has Been Silently Developing Its Bitcoins Mining Business For Several Years”.
Now, “The lottery company appears to be doubling down on Bitcoin mining. Since Bitcoin has the biggest bull run in history».
Similarly, he said: «Adding the mining of Bitcoins to the businesses of these companies. You can significantly increase your grade multiplications».
More companies invest in Bitcoin
Likewise, shares in China’s Nasdaq-listed online gaming company The9 have risen more than 750% since the beginning of the year. After he announced that he would invest in cryptocurrencies in January.
Also, Sino-Global Shipping, an international shipping company that announced that it was investing in Bitcoin mining. It earned more than 300% of its share price on February 3.
Similarly, SOS, a Chinese emergency services company, has posted a gain of more than 300% on its share price since the beginning of the year.
Similarly, Urban Tea Inc, a Chinese bakery and specialty retailer, has soared more than 200% since the beginning of the year. Since switching to Bitcoin mining.
According to Urban Tea CEO Yi Long: «As Blockchain technology and cryptocurrencies are gaining widespread popularity. They’re poised to go mainstream».
Basically, a sustained rise in Bitcoin could drive shares of mining companies higher. But a decline could affect many of these companies if they are otherwise not financially sound.
Indeed, Lingxiao Yang, COO of Crypto Hedge Fund Trade Terminal, stated: “The listing on the United States stock exchanges also helps these companies to grow their mining operations rapidly.».
In closing, with the participation of more companies such as 500.com in the Bitcoin mining industry, China could reaffirm its global leadership in this market.
I say goodbye with this phrase from Winston Churchill: «A pessimist sees difficulty at every opportunity. An optimist sees an opportunity in every difficulty».