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BTC Digital Signs Bitcoin Mining Hosting Agreement By Investing.com

Shenzhen, China – Blockchain technology company BTC Digital Ltd. (NASDAQ:BTCT) today announced that it has signed a contract to host and manage 1,100 Bitcoin mining machines for two Asian companies. These agreements signed today with Recte Technologies Company Limited and ASIA INVESTMENT FUND SP2 demonstrate BTC Digital’s expansion within the cryptocurrency mining industry.

The company will manage deployment of the ANTMINER T21 and ANTMINER L7 models in the United States. This service includes hosting, management, and technical support. Alan Peng, CEO of BTC Digital, expressed his enthusiasm for this agreement and stated that the company aims to provide efficient and reliable services to promote growth within the industry.

Clients, a digital asset management advisory firm and a cryptocurrency mining fund, have indicated potential for additional purchases in the future and continued reliance on BTC Digital’s hosting and management services, demonstrating the potential for a long-term, stable partnership.

BTC Digital’s strategic focus includes value creation across the metaverse, blockchain, and cryptocurrency mining industries. The company is dedicated to developing blockchain-related businesses in North America, including cryptocurrency mining, mining farm construction, mining pool and data center operations, and mining machine accessory business.

BTC Digital’s press release contains forward-looking statements that are subject to market conditions and uncertainties. The Company cautions you that these statements involve risks beyond its control and that actual results may differ materially from those anticipated.

This announcement builds on the press release and provides an overview of BTC Digital’s current business dealings and ambitions within the blockchain and cryptocurrency mining industry.

In other recent news, financial services company BTC Digital Ltd. has expanded its stake in the cryptocurrency mining venture, acquiring an additional 5.23% stake worth approximately $1,050,400. This is part of the company’s strategy to strengthen its position in the cryptocurrency mining equipment market. The company did not disclose the joint venture’s specific operations and future plans.

At the same time, BTC Digital Ltd. announced important results at its annual shareholders’ meeting. The Company’s stockholders have ratified Audit Alliance LLP as an independent registered public accounting firm for the fiscal year ending December 31, 2024. Additionally, we have agreed to the Company’s capital raising strategy by authorizing the issuance of at least 600,000 shares of our common stock through one or more private offerings.

These recent developments demonstrate shareholders’ confidence in the company’s current accounting oversight and strategy. The exact terms and timing of recruitment have not been disclosed. It is notable that BTC Digital Ltd. has changed its name several times in recent years, with the last change occurring on August 16, 2023.

InvestingPro Insights

BTC Digital Ltd.’s recent contract to host and manage 1,100 Bitcoin mining machines is consistent with the company’s strategic focus on expanding its presence in the cryptocurrency mining industry. The move comes at a time when the company’s financial metrics and market performance are painting an interesting picture.

According to InvestingPro data, BTC Digital’s stock price has experienced a remarkable rise of 560.38% in the past month and 586.27% in the past three months. This significant price increase suggests strong market interest in the company’s recent developments and its future potential in the blockchain and cryptocurrency space.

However, it is important to note that BTC Digital’s financials reveal some challenges. As of Q2 2024, the company’s revenue for the last 12 months was $6.77 million, showing a worrying decline in revenue growth of -61.29% over the same period. Additionally, a negative gross profit margin of -20.2% indicates that the company’s operations are struggling to remain profitable.

InvestingPro Tips highlights that while BTC Digital has seen significant returns over the past week, stocks generally exhibit high price volatility. This volatility may be due to the characteristics of the cryptocurrency market and investor sentiment toward blockchain-related companies.

Another related InvestingPro Tip notes that the company operates with a moderate level of debt, which may provide it with some level of financial flexibility to pursue growth opportunities such as the recently announced miner deal.

For investors who want a more comprehensive analysis, InvestingPro offers 14 additional tips on BTC Digital to give you a deeper understanding of the company’s financial health and market position.

This article was translated with the help of artificial intelligence. Please refer to the Terms of Use for further details.

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