English school turned BTC miner in China expands capacity with 220 new units

China-based BTC Digital announced the purchase of 220 new Bitcoin (BTC) mining units on Nov. 3, bringing its total number of machines to 2,174, with over 230PH/s of computing power. The new acquisitions are expected to become operational by the end of the month.

The deal was made with “two unaffiliated third parties” for Bitmain Antminer S19j Pro units in exchange for 276,572 shares of ordinary company stock valued at $968,800, according to a statement. BTC Digital was known as Meten EdtechX Education Group until a name change in August that “better reflects the Company’s current business operations.”

According to the Nasdaq-listed company’s website, it is “a leading general English language training service provider in China.” The website claims that the company has learning centers throughout the country and offers training online and in the metaverse. A Reddit thread begun on Nov. 11, 2022, indicated that the company had ceased teaching operations unexpectedly, however.

Related: Bitmain to start shipping new Bitcoin Antminer T21 in January 2024

The company expanded into Bitcoin mining at the end of 2021 when it deployed 1,482 miners, according to an undated profile on its website. Its mining farms were located in the American states of Pennsylvania and Tennessee and run by a third party. BTC Digital CEO Alan Peng said of the company’s latest purchase:

“With the recent purchases and our plan to further increase the number of mining machines, we aim to continue improving our financial conditions as well as maximizing value for our shareholders.”

It had a market cap of $3.1 million on Sept. 28, after hitting a low of $1.79 per share on Sept. 26. It experienced a surge of activity after its ticker symbol was changed from METX to BTCT on Sept. 28. Shares are valued at $3.66 at the time of writing.

What is the current valuation of the #bitcoin mining sector?

On average, the public miners trade at a P/S ratio of 2.92. This level could surpass 7 in the next bull market, potentially pushing stock valuations to new all-time highs. pic.twitter.com/jTb2MjfvCt

— Jaran Mellerud ⛏️ (@JMellerud) November 3, 2023

China cracked down on Bitcoin mining domestically in the second half of 2021, although its efforts appeared to be less than completely successful.

Magazine: Bitcoin miner gets life in prison, China offers bounties for crypto firms: Asia Express