The world-famous eSports giant announces its entry into the Bitcoin mining market! Details below.
NIP Group, the parent company of world-renowned eSports organization Ninjas in Pyjamas (NiP), has announced its entry into the Bitcoin mining market.
Esports giant Ninjas in Pyjamas begins mining Bitcoin: plans to mine $6.5 million in BTC per month
The company plans to mine 60 BTC per month by investing in a number of mining rigs with a combined computing power of 3.11 EH/s (exahash/sec), which translates to a production cost of approximately $6.5 million at current prices.
However, this figure represents gross income; net profit may vary after accounting for expenses such as energy costs and operating costs.
NIP Group has created a new division to manage mining operations and make strategic decisions regarding mined BTC: the Digital Computing Division.
While the company has yet to reveal details about how it will value bitcoin, the new unit will also be responsible for future mining investments.
“We're not just a gaming company anymore”
NIP Group co-founder and co-CEO Hisham Chahine said in a LinkedIn post that after the company went public last year, they were looking to build revenue models in areas other than esports and entertainment.
Shahin noted that Bitcoin mining is a “related and innovative” area, and they intend to continue to expand in this area.
“We are no longer just a gaming company. We are transforming ourselves into a digital infrastructure company fit for the entertainment era,” said Shaheen, adding that they are investing in real computing and operational capacity.
However, investors do not appear to have approved of the decision yet. The company’s shares have fallen 17% since the announcement on Tuesday, to $2.13. They have fallen 88% from their peak of $17.76 in July 2024.
With this move by NIP Group, institutional firms are joining the trend of creating reserves in Bitcoin, which in many ways is similar to the pioneering model of MicroStrategy. Under the leadership of MicroStrategy founder Michael Saylor, this model has led to a 3,300% increase in the company’s stock, making it a major investor in crypto assets.
However, experts remind that this approach carries risks due to high volatility, and companies may have to sell BTC if difficulties arise.
NIP Group's new focus demonstrates that gaming giants are now looking to grow not just through content creation, but also through digital infrastructure and asset management.
*This is not investment advice.
Source: cryptonews.net
