NIP has made a surprising move into Bitcoin mining. With new capabilities providing a computing power of 3.11 EH/s, the company anticipates significant financial outcomes.
NIP's New Initiative
NIP has announced the establishment of a new Digital Computing Division, which will manage the Bitcoin mining operation. The new hardware is expected to generate around 60 BTC per month, indicating a serious intent to pivot from a purely entertainment-focused business to high-powered digital infrastructure.
Financial Expectations
At current market prices, this new venture could yield approximately $6.5 million in monthly revenue. However, costs related to electricity, maintenance, and infrastructure must be taken into account. Co-founder Hicham Chahine explained that the company's transformation began after going public last year, shifting towards building real computing value in the digital age.
Market Reaction
Despite the ambitious shift, the company's stock fell by 17% following the announcement and is currently down 88% from last year’s highs. Analysts note that mining remains a volatile and capital-intensive venture, especially under uncertain macroeconomic conditions. Nevertheless, for the NIP Group, this move is not just about mining crypto but about mining relevance in a rapidly evolving digital economy.
NIP's entry into Bitcoin mining showcases a serious commitment to the digital technology market, despite the volatility and market challenges.
