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SINGAPORE - BTC Digital Ltd. (NASDAQ:BTCT), a cryptocurrency mining company currently trading near its InvestingPro Fair Value with a market capitalization of $26.5 million, has entered into a strategic memorandum of understanding with Tianci International Inc. (NASDAQ:CIIT), according to a press release issued Tuesday.
Under the agreement, Tianci plans to purchase approximately $5 million in cryptocurrency mining equipment, with BTC Digital providing hosting, operations, and maintenance services for the deployed miners.
The companies will also collaborate on stablecoin-based payment solutions, real-world asset initiatives, and blockchain technology services. BTC Digital will support Tianci's digital transformation efforts by delivering blockchain solutions for supply chain management, financial settlement, and business intelligence applications.
"Our strategic cooperation with CIIT represents an important milestone in BTCT's expansion across the digital asset ecosystem," said Siguang Peng, Chief Executive Officer of BTC Digital.
The partnership aims to combine Tianci's capital investment with BTC Digital's operational capabilities to accelerate mining infrastructure deployment and develop blockchain applications.
BTC Digital describes itself as a blockchain technology company with operations focused on cryptocurrency mining and related services in North America.
The announcement comes as blockchain companies continue seeking strategic partnerships to expand their operational footprint in the evolving digital asset landscape. Despite revenue growth of 29% in the last twelve months, BTC Digital faces profitability challenges, according to InvestingPro analysis, which offers 8 additional key insights about the company's financial health and market position.
In other recent news, BTC Digital Ltd. has made significant strides in its strategic focus by purchasing an additional $5 million worth of Ethereum, increasing its total holdings to 2,135 ETH. This acquisition aligns with the company's ongoing strategy to accumulate Ethereum, following a recent $6 million financing round. BTC Digital announced a strategic shift to adopt Ethereum as its core asset, moving away from its previous Bitcoin-focused approach. The company secured $6 million in financing and plans to convert all existing and future Bitcoin holdings into Ethereum to establish a long-term asset pool centered around the Ethereum ecosystem.
Additionally, BTC Digital closed a $6 million registered direct offering, selling 2 million ordinary shares at $3.00 per share to institutional investors. The proceeds from this offering, along with existing cash, will be used to purchase Ethereum. Previously, BTC Digital completed a $1 million Bitcoin reserve as part of its strategic Bitcoin and Ethereum reserve program. The company has set a goal to increase its total crypto reserves to over $10 million by the end of 2025.
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