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Former Canaan Directors to Guide Chinese Gaming Firm’s Pivot to Crypto Mining

U.S.-listed Chinese gaming company The9 (NASDAQ: NCTY) has announced plans to enter the cryptocurrency mining space.

According to Coindesk, in an SEC filing, The9 stated that it had signed a legally binding “cooperation and investment” agreement with investors including two former directors of cryptocurrency miner maker Canaan (NASDAQ: CAN). 

The company said it is working with the investors, (led by Jianping Kong, former director and co-chairman of Canaan), in order to launch its new cryptocurrency mining operation via a wholly owned subsidiary called NBTC.

The9 is an internet and mobile gaming company based in Shanghai. 

Chairman and CEO of The9, Jun Zhu stated:

“Our goal is to build up cryptocurrencies mining machines for The9 that will contribute 8% to 10% of the global hash rate of bitcoin, 10% of the global hash rate of ethereum and 10% of the global hash rate of Grin and become one of the world’s largest cryptocurrencies mining companies in terms of hash rate.”

The investment agreement will see the issuance of issue Class A ordinary shares and warrants bringing the right to purchase more shares in four tranches. The company also expects to raise about $34 million if all the warrants are exercised.

The9’s shares spiked 87% to $6.62 per share following the announcement.

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