In an announcement earlier today, Chinese gaming company The9 Limited opted for Coinbase custody to be the custodian for the former’s digital assets, including Bitcoin. Coinbase Custody is a wholly-owned subsidiary of Coinbase Global Inc and provides an institutional-grade offline cold storage solution.
The9 Announces Coinbase Custody Account For Crypto Storage
According to The9, it will deposit a portion of the mined cryptocurrency to follow through with its risk mitigation and management policies. The company will keep its cryptos distributed with other cold storage wallets to ensure minimum vulnerability. The company is starting with 200 BTC that will be stored in its segregated cold storage account at Coinbase Custody. Further deposits will be made as The9 mines more cryptos.
The9 Moves To Bitcoin Mining, Purchases AvalonMiners
Back in April, The9 announced that it had agreed to purchase 2,000 units of bitcoin mining machines called AvalonMiners, with a total hash rate of 100 PH/S for about $6.72 million in stock. The company had to sign a legally binding Memorandum of Understanding (MOU) with an unrelated Bitcoin mining machine owner to purchase the mining machines by issuing Class A ordinary shares. According to the MOUs, The9 was to issue approximately 8,127,390 Class A ordinary shares (equivalent to 270,913 ADSs) to the sellers based on The9 share price of $24.81 before the MOU, with a lock-up period of 6 months.
The company had also announced that it completed the signing of the definitive agreements for 12,246 units of Bitcoin mining machines with a total hash rate of approximately 288PH/S.
The9’s Crypto Pivot Continues With Purchase Of Crypto Mining Company
In June, The9 had also agreed to buy and control the Canada-based carbon-neutral crypto mining company, Montcrypto. They pledged C$7.6 million (US$6 million) to assume controlling shares of the company. The money will help fund a 20 MW electricity supply in Calgary, Canada, enough to power more than 6,000 S19j Antminers. With mining firms like The9 continuing to add more hash power, Bitcoin’s hashrate, which signifies the network’s total power consumption and mining output, has reached an all-time high. Companies like Montcrypto will play a role in devising an environment-friendly mining procedure.
The9’s purchase of the mining machines, gaining a controlling stake of a carbon-neutral crypto mining company, and its subsequent custody account with Coinbase Custody indicate that the company is pivoting into crypto mining.
About The9 Limited
The9 Limited (The9) is an Internet company based in China listed on Nasdaq in 2004. The9 aims to become a diversified high-tech Internet company and has recently announced its move to cryptocurrency mining.
About Coinbase Custody
Launched in 2018, Coinbase Custody offers clients access to the secure, institutional-grade offline storage solution that Coinbase’s exchange business has used since 2012. Coinbase Custody is an independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA, offering the most sophisticated and reliable custody solution in the world
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.