NIP Group acquires bitcoin mining assets, adds 3.11 EH/s hash rate

Published 01/07/2025, 12:10
NIP Group acquires bitcoin mining assets, adds 3.11 EH/s hash rate

ABU DHABI - NIP Group Inc. (NASDAQ:NIPG), a $139 million market cap digital entertainment company, has entered into a definitive agreement to purchase bitcoin mining equipment with a combined hash rate of 3.11 EH/s, the company announced Tuesday. The stock has shown remarkable momentum, gaining over 44% in the past week, according to InvestingPro data.

The acquisition, expected to close by September 30, will be paid through the issuance of approximately 119.5 million Class A ordinary shares to sellers Fortune Peak Limited and Apex Cyber Capital Limited.

The mining equipment is currently operational and expected to produce about 60 bitcoins monthly. To manage these operations, NIP Group has established a new Digital Computing Division.

"This transaction represents a strategic expansion of our platform into digital infrastructure," said Hicham Chahine, Co-CEO of NIP Group, in the press release statement.

The deal marks NIP Group’s entry into bitcoin mining while positioning the company for potential future opportunities in high-performance computing and artificial intelligence applications.

The transaction remains subject to customary closing conditions, and the company noted there is no guarantee the deal will be completed by the expected date or at all.

An investor rights agreement will also be established between NIP Group and the sellers to define rights and obligations following the transaction’s completion.

NIP Group, which operates gaming and esports businesses across multiple continents, trades on the Nasdaq under the ticker NIPG. While the company reported $85.27 million in revenue last year, analysts are optimistic about its future, predicting profitability in the coming year. For more detailed financial analysis and exclusive insights, check out InvestingPro, which offers 12 additional investment tips for NIPG.

In other recent news, NIP Group Inc. has made a significant move in the entertainment sector by launching a joint venture, NIP Culture & Entertainment (Beijing) Co., Ltd., to expand its live entertainment presence in China. This venture’s inaugural event, the 2025 Qianfan Music Season - Wonderland Music Festival, took place in Beijing, drawing over 70,000 attendees. The festival featured performances from 19 musicians and appearances by esports teams, alongside curated food and creative market experiences. Mario Ho, Chairman and Co-CEO of NIP Group, expressed the company’s intention to bring similar immersive festival experiences to major cities across China. Yuan Gao, CEO of the new venture, highlighted the aim to create an integrated cultural space that combines music, gaming, and creative expression. The company noted that China’s live-entertainment market reached RMB 79.6 billion (US$11.0 billion) in 2024, with a significant portion of the audience being under 30. NIP Group plans to host additional music festivals in key Chinese cities throughout 2025, further diversifying its revenue streams and expanding its entertainment intellectual property.

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