Dream

Bitcoin

Green

Million

In a striking move that underscores the international ambitions of Chinese firms in the cryptocurrency mining sector, Chinese Green Agriculture has invested $49 million in acquiring Lonestar Dream, a <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">Texas</a>-based bitcoin mining facility. This acquisition marks a significant pivot for the company, traditionally known as a manufacturer and distributor of fertilizers, towards embracing the lucrative realm of bitcoin mining, despite <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">China</a>'s official ban on cryptocurrency mining activities since 2021, according to <a href="https://coinlife.com/news/kitajskaja-kompanija-priobrela-predprijatie-do-dobyche-bitkoinov-v-tehase/" rel="noopener noreferrer nofollow">Coinlife</a>.
The deal saw Poolin, a leading <a href="https://ultramining.com/en/ratings/" rel="noopener noreferrer nofollow">mining pool</a> and the previous owner of the facility, part ways with the venture. Zhibiao Peng, the founder of Poolin, orchestrated the sale, which landed the company a substantial $49 million. This transition not only highlights the growing interest of Chinese businesses in establishing mining operations abroad but also signifies a potential shift in the industry's dynamics, with traditional companies exploring digital asset ventures as a viable diversification strategy.
Intriguingly, the investment in Lonestar Dream overshadows the total market valuation of Chinese Green Agriculture itself, which stands at $40 million according to its New York Stock Exchange listing. This bold step into bitcoin mining suggests a strategic realignment for Chinese Green Agriculture, positioning cryptocurrency mining as a cornerstone of its future business model.
The disposition of the $49 million from the sale remains a topic of speculation among industry observers, especially in light of Poolin's recent financial challenges. Having halted cryptocurrency withdrawals in September 2022 due to liquidity issues, Poolin has been navigating through turbulent waters. However, with a declared optimism towards a restructuring plan set to unfold in the first quarter of the year, Poolin aims to stabilize its footing in the mining sector, operating with equipment totaling a <a href="https://ultramining.com/news/en/bitcoin-miners-set-for-a-tough-ride-as-2024-halving-nears-jp-morgan/" rel="noopener noreferrer nofollow">hash rate</a> capacity of 6 Eh/s.

Chinese Green Agriculture Dives into Bitcoin Mining with $49 Million Texas Acquisition

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