Gaming hotbed launches crypto-mining: share price soars 87 per cent
After gaming firm The9 Ltd announced on Monday it would invest in crypto-mining, its share price soared 87 percent.
The9 Ltd is a Shanghai-based gaming company that was founded in 2004. At one time, the company even held the exclusive licence for World of Warcraft in China. The9 Ltd announced on Monday that it had signed an investment agreement with bitcoin mining company Canaan. In response, the NASDAQ-listed company’s share price rose 87 percent.
The gaming company’s CEO, Jun Zhu, expressed optimism about the new investment agreement with Canaan.
Our goal is to be one of the biggest players in the mining industry. We want to reach eight to ten percent of Bitcoin’s global hashrate, ten percent of Ethereum’s global hashrate, and ten percent of Grin’s global hashrate.
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The company also announced that it will issue warrants. The warrants are expected to raise $34 million, which The9 Ltd plans to use to invest in crypto-mining equipment.
Crypto mining saves The9 Ltd from delisting
Just a few months ago, NASDAQ’s Listing Qualifications Department warned The9 Ltd against delisting. The department advised the gaming company that it no longer met NASDAQ’s requirements due to insufficient market capitalisation.
The company was able to save itself from delisting by getting into crypto-mining. Currently, The9 Ltd’s market capitalisation is at $58.367 million. In the last 30 days, the share price has risen by a total of 115.69 per cent.