Bitcoin and cryptocurrency has been one of the, if not the absolute biggest trend in fintech over the past year and a half. Events such as Tesla CEO, as well as now world’s richest man, Elon Musk purchasing over €1.3 billion in bitcoin in an effort to accept the crypto for Tesla purchases has shifted the landscape dramatically. This has led to many fintech giants, as well as some of the central banks of the world’s biggest economies, to issue statements on how they will move forward with crypto transactions. China is one of the biggest names in the crypto world at the moment, as they are the only country to currently be issuing a digital currency, the digital yuan, through their central bank, the People’s Bank of China. In an effort to secure more bitcoin and remain competitive in the space, startup Future FinTech has announced that they have purchased Nanjing Ribensi Electronic Technology Co. in an effort to begin crypto mining. Future FinTech is a New York based software firm which is leading the way in the blockchain e-commerce space, founded back in 1998. This seems to be an obvious and smart move for Future FinTech, as being a blockchain leader means they should be investing in smart ways to obtain more crypto to use for their platform.
The acquisition of the Chinese crypto mining firm cost Future FinTech just over €7.5 million. This isn’t just a partnership, as Future FinTech now has full control of Nanjing Ribensi Electronic Technology Co.’s entire operations, including over 30,000 ASICs which are located in China’s Sichuan region. ASIC stands for application-specific integrated circuit, and is a device solely designed for mining bitcoin. Farming operations are said to continue in China with the original farmers who worked for Nanjing Ribensi Electronic Technology Co., according to Future FinTech. Future FinTech CEO Shanchun Huang said that this farm “enables us to deploy advanced bitcoin mining machines, but to potentially generate profits due to the expected low energy cost of the target mining farm since it uses local low cost of hydroelectricity to run the mining machines.” To make this acquisition an even sweeter deal for Future Fintech, they’ve been guaranteed between €1.7 and €3.4 million in profits from now till 2023, as any missing difference will be covered by current shareholders of Nanjing Ribensi Electronic Technology Co. This seems to be the perfect time for Future FinTech to make this acquisition, and get ahead of the competition in the bitcoin mining space.