Coolpad Group, a telecommunications equipment company based in Shenzhen, has made headlines with its recent announcement of a $13.5 million investment in crypto mining rigs.
The company, which is publicly listed on the Hong Kong Stock Exchange, revealed in a regulatory filing its decision to allocate over HK$106 million for the purchase of Bitcoin mining rigs. This move comes as Coolpad Group actively explores opportunities in the web 3.0 digital currency business.
According to the filing, Coolpad intends to acquire 2,700 crypto mining rigs from JingYun Intelligent Technology Limited, a company based in Hong Kong, with plans to deploy them in North America. The manufacturer of the equipment was not specified in the document. This investment is expected to increase Coolpad’s current computing power from 873,000 TH/s to an estimated 1,504,800 TH/s.
The transaction is projected to be finalized within three months, as stated in the document.
Earlier in May, Coolpad Group had hinted at its interest in the crypto industry by unveiling a $28 million investment plan to acquire shares in publicly traded Bitcoin mining companies listed on Nasdaq. The company specifically mentioned its intention to invest in companies like CleanSpark (CLSK), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), and Hashdex Bitcoin Futures ETF (DEFI).
Recognizing the current market trends and the bright future of blockchain technology and crypto assets, Coolpad highlighted in its regulatory filing that investments in listed securities within the crypto sector present an exciting opportunity to expand its digital currency business.
In related news, Bitfarms stock saw a 15% increase after announcing a new large-scale mining site.