The Chinese company The9 Ltd Announced its Entry into the Mining Industry.
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The9 company announced its entry into the mining industry. Stocks Soared 140%
Nasdaq-listed company The9 Ltd announced its entry into the cryptocurrency mining industry. Within two days of the announcement, shares in a Chinese Internet company soared 140%.
The chart below shows an increase in the NCTY rate from around $ 3.50 to $ 8.56 amid a surge in trading volumes.
The US Securities and Exchange Commission (SEC) website says that The9 Ltd has signed an agreement with several former board members of the miner manufacturer Canaan. The9 will issue Class A shares and warrants for them in exchange for helping them set up a mining business, including developing specialized hardware.
Thanks to the issue of securities, the company intends to raise $ 34 million, creating a division of NBTC Limited for the new direction.
“Our goal is to create mining devices for The9 that will generate 8% to 10% of the global hashrate for Bitcoin, 10% for Ethereum, and 10% for Grin,” – said Jun Zhu, CEO of The9.
Surprisingly, shortly before the announcement, The9 received a thin capitalization notice for listing on the Nasdaq exchange – the figure should exceed $ 35 million.
About The9 Ltd
The9 Ltd was founded in 1999. It develops its own online games and distributes games from other well-known manufacturers in the PRC. The9 Ltd was previously the exclusive Chinese distributor of Blizzard’s World of Warcraft.
Since 2004, The9 Ltd has been listed on the Nasdaq. In 2018, the company decided to diversify its business by including blockchain projects in its investment portfolio. In particular, The9 Ltd structures entered into agreements with Gingkoo Technology and C&I Singapore Renewable and Innovative companies on the development of projects based on distributed ledger technology, related, in particular, to renewable energy.
The9 company was the first to invest in the Telegram (TON) blockchain project during a closed coin offering (ICO) in 2018. It acquired 5,297,257 project tokens for $ 2 million. Subsequently, the TON project was closed amid problems with the SEC and returned $ 1.2 billion to investors.
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