Bit Origin Limited (NASDAQ: BTOG), an emerging growth company engaged in crypto mining business with diversified expansion strategies, said last week that it has entered into a Letter of Intent with an undisclosed company to purchase 850 Antminer S19j Pro (100 TH/s) Bitcoin Miners, which are expected to ramp up the hash rate of the company’s miner fleet by over 85,000 TH/s.
The anticipated purchase of miners will increase Bit Origin’s total Bitcoin miners to 5,228 units, producing approximately 501.2 PH/s when all miners are operating at full capacity, and it is expected to produce 63.45 BTCs per month when all miners are deployed.
Bit Origin was formerly known as China Xiangtai Food Co. The recently re-branded company is also actively deploying blockchain technologies, alongside diversified expansion strategies.
According to the LOI, Bit Origin has agreed to purchase 850 Bitmain S19j pro Bitcoin Miners in an aggregate value of $6,375,000. The Bitcoin miner says it expects to enter into a definitive agreement and anticipates the transaction will be completed in the coming weeks, subject to the customary conditions. The mining machines are expected to be delivered to Bit Origin’s U.S. mining facility upon assigning of the definitive agreement.
As the transaction proceeds, Bit Origin said it will publicly disclose required information either through press releases or SEC filings, as appropriate.
Lucas Wang, Chairman and Chief Executive Officer of the Company, explained: “We are very pleased to propose another asset purchase following the previous proposed purchase announced on June 1st, 2022, and continue working toward our strategic approach to accumulating miner assets. As we keep accumulating more miner assets and staying ahead of innovation, we are [hoping] to become a leading bitcoin mining company through innovations.”
Bit Origin announces underwritten public offering
Bit Origin also announced the pricing of an underwritten public offering of over 9m ordinary shares at an offering price of $0.51. The gross proceeds are expected to be approximately $5 million, before underwriting discounts and commissions, along with other estimated offering expenses. Bit Origin said it intends to use the net proceeds from the offering for working capital and general business purposes. The offering is expected to close on June 7, 2022, subject to satisfaction of customary closing terms and conditions.
In addition, Bit Origin granted the underwriter a 45-day option to purchase an additional 1,470,588 ordinary shares, representing up to 15% of the number of the shares, solely to cover over-allotments, if any. A full exercise of the over-allotment option would increase the total gross proceeds of the offering to approximately $5.75 million.
Univest Securities, LLC is acting as the sole book runner for this offering.
Shares in Bit Origin somewhat predictably fell on news of its offering to just under 50 cents. The stock had previously been trading at around 93 cents. The stock’s 52 week high is $3.12, achieved back in December.