BIT Mining Announces US$50 Million Private Placement

Rhea-AI Summary

BIT Mining Limited (NYSE: BTCM) announced a private placement to raise US$50 million by issuing 100 million Class A ordinary shares and warrants for additional shares. Each share is priced at US$5.00 for ten shares, with a three-year term on the warrants and an exercise price of US$6.81 for ten shares. The funds will be used to acquire mining machines, expand data centers, and improve working capital. The closing date is expected around July 16, 2021.

Positive

• Successful raising of US$50 million, which can enhance operational capacity.
• Funds designated for expanding infrastructure and acquiring new mining machines.

Negative

• The issuance of additional shares may lead to shareholder dilution.
• Private placement not registered under the Securities Act, limiting immediate resale options.

SHENZHEN, China, July 12, 2021 /PRNewswire/ -- BIT Mining Limited (NYSE: BTCM) ("BIT Mining" or the "Company"), today announced that it has entered into securities purchase agreements with certain institutional and accredited investors ("the Investors") to raise US$50 million in a private placement. Under the terms of the private placement, the Company will issue 100,000,000 Class A ordinary shares, and warrants to purchase up to an additional 100,000,000 Class A ordinary shares to the Investors, at a purchase price of US$5.00 per ten Class A ordinary shares, with one warrant included in the price of each Class A ordinary share. The warrants will have a term of three years, will be exercisable six months following their issuance date and will have an exercise price of US$6.81 per ten Class A ordinary shares. Ten Class A ordinary shares can be converted into one American Depositary Share of the Company (collectively, the "ADSs") if certain conditions are satisfied.

H.C. Wainwright & Co. is acting as the sole placement agent for the offering.

The Company intends to use the net proceeds of the private placement to acquire additional mining machines, build new data centers overseas, expand its infrastructure, and improve its working capital position. The closing of the private placement is expected to occur on or about July 16, 2021, subject to satisfaction of customary closing conditions.

The offer and sale of the foregoing securities, are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

In connection with the private placement, the Company and the Investors entered into a registration rights agreement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.

About BIT Mining

BIT Mining (NYSE: BTCM) is a leading cryptocurrency mining company, with a long-term strategy to create value across the cryptocurrency industry. Its business covers cryptocurrency mining, mining pool, and data center operation. The Company has deployed Bitcoin mining machines with a theoretical maximum total hash rate capacity of approximately 1,031.5 PH/s and owns the entire mining pool business operated under BTC.com, including the domain name BTC.com. The Company has also entered into a definitive agreement to acquire a 7-nanometer cryptocurrency mining machine manufacturer, Bee Computing, to complete its vertical integration with its supply chain, increase its self-sufficiency and strengthen its competitive position.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Important factors that could cause BIT Mining's actual results to differ materially from those indicated in the forward-looking statements include, among others: the completion of the private placement; the satisfaction of customary closing conditions related to the private placement and the intended use of net proceeds from the private placement. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For further information:

BIT Mining Limited
ir@btc.com
Ir.btc.com (The Investor Relations website has moved to http://ir.btc.com.)
Ms. Danni Zheng
Phone: +86 755 8633 8005

The Piacente Group, Inc.
Helen Wu
Tel: +86 (10) 6508-0677
Email: BITMining@thepiacentegroup.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com

 

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SOURCE BIT Mining Limited

FAQ

What is the amount raised in BIT Mining's recent private placement?

BIT Mining raised US$50 million in a recent private placement.

How many shares did BIT Mining issue in its private placement?

BIT Mining issued 100 million Class A ordinary shares in the private placement.

What is the exercise price for the warrants issued by BIT Mining?

The warrants have an exercise price of US$6.81 for ten Class A ordinary shares.

When is the expected closing date for BIT Mining's private placement?

The expected closing date for the private placement is around July 16, 2021.

What will BIT Mining do with the proceeds from the private placement?

The proceeds will be used to acquire mining machines, expand data centers, and improve working capital.