NIP Group, the parent company of internationally renowned eSports organization Ninjas in Pyjamas (NiP), has announced its entry into the Bitcoin mining market.
The company plans to mine 60 BTC per month by investing in a number of mining rigs with a total computing power of 3.11 EH/s (exahashes per second), which at current prices is equivalent to a production cost of approximately $6.5 million.
However, this amount represents gross income; net income may vary after accounting for expenses such as energy costs and operating expenses.
NIP Group has established a new division to manage mining operations and make strategic decisions regarding mined BTC: the Digital Computing Division.
While the company has not yet revealed details of how it will value bitcoins, the new division will also take responsibility for future mining investments.
“We are no longer just a gaming organization”
NIP Group co-founder and co-CEO Hisham Chahine said in a statement on LinkedIn that after the company went public last year, they were looking to build revenue models in areas other than esports and entertainment.
Shahin emphasized that Bitcoin mining is a “related and innovative” field and they will continue to develop in this direction.
“We are no longer just a gaming company. We are becoming a digital infrastructure company for the entertainment era,” added Shaheen, pointing out that they are investing in real computing and operational power.
However, investors did not seem to approve of the decision. The company’s shares have fallen 17% since the announcement on Tuesday, to $2.13. They have fallen 88% from a peak of $17.76 in July 2024.
NIP Group’s move signals that institutions are joining the trend of creating Bitcoin reserves similar to MicroStrategy’s pioneering model. Under the leadership of MicroStrategy founder Michael Saylor, this model has led to the company’s stock rising 3,300%, making it a significant player in the crypto asset market.
However, experts warn that this approach comes with risks due to high volatility, and companies may have to sell BTC if they run into financial difficulties.
NIP Group’s new focus demonstrates that major gaming companies are looking to grow not only through content creation, but also through digital infrastructure and asset management.
*This is not investment advice.
Source: cryptonews.net
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