Esports giant Ninjas in Pyjamas buys Bitcoin miners, expects to mine $6.5 million in BTC per month
NIP Group, the parent organization of popular eSports team Ninjas in Pyjamas, announced its entry into the Bitcoin mining market on Tuesday .
The company is entering the space by acquiring an unspecified number of Bitcoin mining rigs with a combined hashrate of 3.11 Exahash/s, a measure of the computing power used to mine Bitcoin. NIP Group estimates that their mining operation will produce 60 BTC per month, which at current prices is worth about $6.5 million. Of course, this won’t be a net profit, since Bitcoin mining equipment requires significant electricity costs to operate.
In addition, the company has created a digital computing division that will handle both current and future mining operations , as well as determine how to use the acquired bitcoin. NIP Group did not provide a comment to Decrypt about its plans for the acquired BTC.
NIP Group bills itself as an esports entertainment company, but is best known for its esports team Ninjas in Pyjamas, which competes at the highest levels in Valorant , League of Legends , Rocket League , and other games. From 2012 to 2013, its Counter-Strike: Global Offensive team posted an 87-game winning streak , a record that remains unbroken and is held in high regard .
“We're not just a gaming company anymore”
NIP Group founder and co-CEO Hisham Chahine said on LinkedIn that after the company went public last year, it was looking for new ways to generate revenue outside of esports and entertainment. Bitcoin mining was seen as a relevant and related vertical for development, and he added that further expansion into mining was on the horizon.
However, NIP Group shares have fallen 17% to $2.13 since Tuesday's announcement , according to TradingView data . They are currently 88% below their all-time high of $17.76 reached in July 2024.
“We’re not just a gaming company anymore,” Shaheen wrote on LinkedIn. “We’re becoming a next-generation digital infrastructure company built for the entertainment age. We’re bringing real computing power. Real operators. Real capabilities.”
The move comes amid a wave of public companies creating cryptocurrency-based treasuries and reserves , following the model that made Strategy (formerly MicroStrategy ) so successful.
Under Michael Saylor's leadership, Strategy has transformed itself from a mediocre business intelligence software company into one of the hottest stocks in the market, rising more than 3,300% since its first Bitcoin purchase. The company now owns over $65 billion worth of Bitcoin, according to Saylor Tracker .
As the Treasury bond trend sweeps the crypto industry, some experts warn it could be disastrous if companies are forced to sell off their holdings.
Source: cryptonews.net
