NIP Group, the parent company of popular eSports organization Ninjas in Pyjamas, announced its entry into the Bitcoin mining market on Tuesday .
The company is entering the industry by acquiring an unspecified number of Bitcoin mining rigs with a combined hashrate of 3.11 EH/s, a measure of the computing power used in the Bitcoin mining process. NIP Group estimates that its mining operation will generate 60 BTC per month, which at current prices is worth about $6.5 million. However, this will not be a net profit, as Bitcoin mining rigs are extremely expensive to operate due to high electricity costs.
Additionally, the company has created a digital computing department that will oversee current and future mining operations , as well as decide how to use the acquired bitcoin. NIP Group did not respond to Decrypt’s request for comment on its intentions regarding the acquired BTC.
NIP Group positions itself as a recreational esports group, but it has gained the most popularity thanks to the Ninjas in Pyjamas team, which competes at the highest level in Valorant , League of Legends , Rocket League , and other disciplines. From 2012 to 2013, its Counter-Strike: Global Offensive team won 87 games in a row – a record that still stands and commands great respect .
NIP Group founder and co-founder Hisham Chahine said on LinkedIn that after going public last year, the company is looking for new ways to generate revenue outside of esports and entertainment. Bitcoin mining was seen as a relevant and related area for expansion, and he added that more mining is on the horizon.
However, NIP Group shares have fallen 17% to $2.13 since Tuesday’s announcement , according to TradingView . They are currently 88% below their all-time high of $17.76, reached in July 2024.
“We’re not just a gaming company anymore,” Shaheen wrote on LinkedIn. “We’re becoming a next-generation digital infrastructure company built for the entertainment age. We’re bringing real computing power. Real operators. Real capabilities.”
The move comes amid a wave of public companies setting up cryptocurrency-based treasuries and reserves , following the model that made Strategy (formerly MicroStrategy ) so successful.
Under Michael Saylor’s leadership, Strategy has transformed itself from a mediocre business intelligence software company into one of the hottest stocks in the market, rising more than 3,300% after its first Bitcoin purchase. The company now owns more than $65 billion worth of Bitcoin, according to Saylor Tracker .
As the Treasury bond trend sweeps the crypto industry, some experts warn it could have disastrous consequences if companies are forced to sell off their holdings.
Source: cryptonews.net
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