Shares of gaming company in Nasdaq increased 100% with Bitcoin announcement
The9, a NASDAQ-listed gaming company, has announced that they will step into the cryptocurrency mining industry. After the announcement, the company’s shares rose 112 percent in a very short time, and its market capitalization exceeded $ 60 million.
The9, which was founded in 2004 and is based in Shanghai and once owned the license of the famous World of Warcraft game in China. Company said yesterday that the giant cryptocurrency mining company Canaan has signed an investment agreement with former board members.
As part of the agreement, The9 company will be able to issue Class A ordinary shares to former Canaan executives. 3 executives, Sun Qifeng, Zhang Li and Kong Jianping, will also contribute to the company’s crypto mining business and equipment acquisition. A statement from the company said that if all licenses and permissions are issued, a total of close to $ 34 million in both US dollars and cryptocurrencies will be raised, and a subsidiary called NBTC is planned to be created to deal only with this issue.
The machines will be capable of providing 10 percent of the Bitcoin hash rate
Regarding the matter, The9 chairman and CEO Jun Zhu said:
“Our goal is to produce cryptocurrency mining devices for The9. These machines will be capable of providing 8 to 10 percent of Bitcoin’s global hash rate, 10 percent of Ethereum’s and 10 percent of grin’s”
The9 company had received a warning from Nasdaq in November, citing a lack of minimum market capitalization criteria of $ 35 million. Nasdaq’s warning stated that the company was given a 180-day period, otherwise it would be excluded from the list.