The9, a US-listed internet, and mobile gaming firm based in Shanghai is all set to enter into the cryptocurrency mining industry and is looking to seek guidance from the best in the business. As per an SEC filing signed a legally binding “cooperation and investment” agreement with investors that include former directors of leading crypto mining machines maker Canaan.
The investor group that the Chinese gaming company is currently working with is headed by Jianping Kong, former director and co-chairman of Canaan. As soon as the news about The9’s entering the cryptocurrency mining industry went public, its share price soared by almost 100%.
Affected by the investment in the crypto mining business, The9 price of US stocks soared more than 100% after the opening, but the total market value is still only about 64 million. Canaan, Yibang, BTBT and other mining concepts all rose. pic.twitter.com/n2J0gUyA72
— Wu Blockchain (@WuBlockchain) January 4, 2021
The9 Aims to Become the Biggest Crypto Miner in the US
The Crypto mining industry is a growing market that has attracted millions in investment from many investors in the US in the past couple of years. A majority of crypto mining is located in China owing to the cheap electricity available there. The firm once fully operational would account for 8%-10% of Bitcoin, 10% of ETH, and 10% of Grin computing power. The firm would for now work with Canaan‘s original Hangzhou team to start mining
Jun Zhu, chairman, and CEO of The9 said,
“Our goal is to build up cryptocurrencies mining machines for The9 that will contribute 8% to 10% of the global hash rate of bitcoin, 10% of the global hash rate of ethereum and 10% of the global hash rate of Grin and become one of the world’s largest cryptocurrencies mining companies in terms of hash rate.”
Crypto mining has emerged as one of the key industry which every country wants a share of, many US-based firms such as Riot Blockchain is looking to develop the largest private bitcoin and crypto mining company as the industry has already worth billions of dollars. Another prominent reason is to take away the monopoly of China in the bitcoin mining game as being an authoritarian state many fear that it might regulate bitcoin mining to take control of the network.