Chinese company Green Agriculture has invested $49 million to acquire Texas-based bitcoin mining operation Lonestar Dream, underscoring the international ambitions of Chinese companies in the cryptocurrency mining industry. The acquisition marks a significant pivot for the company, traditionally known as a fertilizer manufacturer and distributor, into the lucrative Bitcoin mining space, despite China's official ban on cryptocurrency mining starting in 2021, Coinlife reports.
As a result of the deal, Poolin, the leading mining pool and previous owner of the enterprise, parted ways with him. Poolin founder Zhibiao Peng orchestrated the sale, which netted the company a significant $49 million. The deal not only underscores the growing interest of Chinese companies in setting up mining operations overseas, but also signals a potential shift in industry dynamics as traditional companies consider setting up mining operations overseas. digital asset mining as an effective diversification strategy.
Interestingly, the investment in Lonestar Dream exceeds the total market valuation of Chinese Green Agriculture itself, which, according to its listing on the New York Stock Exchange, is $40 million. This move indicates a strategic realignment of Chinese Green Agriculture, which positions Bitcoin mining as a cornerstone your future business model.
The use of the $49 million from the sale remains a matter of speculation among industry observers, especially in light of Poolin's recent financial troubles. Having suspended cryptocurrency withdrawals in September 2022 due to liquidity issues, Poolin is going through turbulent times. However, having stated its optimism regarding the restructuring plan, which is expected to be implemented in the first quarter of this year, Poolin intends to stabilize its position in the mining industry by operating equipment with a hashrate of 6 Eh/s.
