NIP Group, the dad or mum firm of iconic esports group Ninjas in Pyjamas, introduced on Tuesday that it’s getting into the sport of Bitcoin mining.
The group is becoming a member of the trade by way of the acquisition of an undisclosed variety of Bitcoin mining rigs which have a mixed hashrate of three.11 EH/s—a unit measuring computational energy utilized in Bitcoin mining. NIP Group estimates its mining operation will produce 60 BTC a month, price roughly $6.5 million at present costs. After all, this is not going to be pure revenue, as working a Bitcoin mining rig is extraordinarily costly on account of electrical energy prices.
Alongside this, the corporate has established a Digital Computing Division that may handle its present and future mining operations, in addition to figuring out what to do with the acquired Bitcoin. NIP Group didn’t reply to Decrypt’s request for touch upon its plans with the acquired BTC.
NIP Group manufacturers itself as an esports leisure group, however it’s most recognized for the esports workforce Ninjas in Pyjamas, which competes on the prime degree in Valorant, League of Legends, Rocket League, and extra. From 2012 to 2013, its Counter-Strike: World Offensive workforce went on an 87-win streak—a document that is still unbroken and extremely revered.
“Not only a gaming firm anymore”
Founder and co-CEO of NIP Group, Hicham Chahine, stated on LinkedIn that following the corporate going public final yr, it has been searching for new methods to generate income outdoors of esports and leisure. Bitcoin mining was seen as a sufficiently related and adjoining vertical to sort out, he added that additional mining enlargement is on the horizon.
That stated, NIP Group’s inventory has fallen 17% to $2.13 because the Tuesday announcement, based on TradingView. It’s now down 88% from its all-time excessive of $17.76, hit in July 2024.
“We’re not only a gaming firm anymore,” Chahine wrote on LinkedIn. “We have gotten a next-gen digital infrastructure firm constructed for the leisure period. Bringing in actual computing energy. Actual operators. Actual capabilities.”
The transfer comes amid a wave of public firms creating crypto-based treasuries and reserves, following the mannequin that made Technique, previously MicroStrategy, so profitable.
Led by Michael Saylor, Technique turned itself round from a reasonably common enterprise intelligence software program options firm to one of the crucial sought-after shares available on the market—surging greater than 3,300% from its first Bitcoin buy. The agency now owns greater than $65 billion price of Bitcoin, based on Saylor tracker.
Whereas the treasury development sweeps the crypto trade, some specialists have warned that it may spell catastrophe if corporations are pressured to promote.
