Blockchain pro acquisition of P2P company transforms into Bitcoin Mining, BTBT stock price big pump 1451%

Recently, it was reported that a well-known Blockchain Community founder and a certain Token founder acquired a Chinese P2P company that was previously listed on the US stock market. The company was subsequently renamed "Bit Digital" and changed its NASDAQ trading code to "BTBT". According to public information, Bit Digital's new business scope has expanded to Bitcoin Mining, owning over 20,000 Bitcoin Mining Rigs for mining operations.

The acquired company successfully went public on NASDAQ in the United States on March 20, 2018, and was then hailed as the "first Chinese car loan stock." However, the company was later investigated by the Pudong Branch of the Shanghai Public Security Bureau for allegedly illegally absorbing public deposits, becoming the first US-listed P2P platform to face such treatment.

The acquirer had previously issued a type of Token, which later transformed from a public chain to a Mining coin due to a significant drop in coin price, focusing on the concept of Mining dividends. Users holding this Token could receive dividends from the company's Mining operations, and the company also promised to continuously buy back and destroy this Token using Mining profits. However, later, due to various reasons, both Mining and buyback activities were suspended.

According to Bit Digital's semi-annual report submitted to the U.S. Securities and Exchange Commission (SEC) on October 19, the company's Bitcoin mining power deployed in the first half of the year reached 1250 PH/S, ranking first among NASDAQ-listed companies. The company's Bitcoin mining business began in February of this year, deploying a total of 22,869 Mining Rigs, mining 949.51 Bitcoins. As of June 30, its Bitcoin mining business revenue was $690,000.

Recently, as the Bitcoin market continues to heat up and coin prices keep rising, Bitcoin-related concept stocks on NASDAQ have generally seen significant increases. Data shows that Bit Digital (formerly known as CoiNoble) saw its stock price drop to a low at the beginning of the year, but after starting its Mining operations, it began to rise consistently, with a cumulative increase of 1451.55% in 2020.

This series of events reflects the rapid changes in the cryptocurrency industry and the trend of integration between traditional finance and emerging blockchain technology. With the rise in Bitcoin prices and the increase in institutional investors, similar business transformations and acquisitions may continue to occur in the future. However, investors should cautiously assess the associated risks, as the cryptocurrency market still has a high degree of volatility and uncertainty.