Coolpad Group Allocates $13.5M to Purchase Bitcoin Mining Rigs, Targeting North American Deployment

Shenzhen-headquartered telecommunications equipment company Coolpad Group has announced the purchase of $13.5 million worth of crypto mining rigs.

Telecommunications equipment company Coolpad Group, headquartered in Shenzhen, has announced a purchase of $13.5 million worth of crypto mining rigs.

Coolpad Group, a public Chinese telecom provider listed on the Hong Kong Stock Exchange, has disclosed in a regulatory filing that it has set aside over HK$106 million (about $13.5 million) to purchase Bitcoin mining rigs as the company now “actively pursues opportunities in web 3.0 digital currency business.”

According to the document, Coolpad intends to acquire 2,700 crypto mining rigs from Hong Kong-based JingYun Intelligent Technology Limited, with deployment planned for North America. The filing does not specify the manufacturer of the equipment. This investment aims to increase Coolpad's current computing power from 873,000 TH/s to an estimated 1,504,800 TH/s.

The transaction is expected to be completed within three months, the document noted.

Coolpad Group initially announced its focus on crypto in early May, revealing a $28 million investment plan to acquire shares of publicly traded Bitcoin mining companies listed on Nasdaq. The company expressed interest in purchasing shares of entities like CleanSpark (CLSK), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), and Hashdex Bitcoin Futures ETF (DEFI), among others.

Highlighting the current market trends and the promising future of blockchain technology and crypto assets, Coolpad stated in a regulatory filing that investments in listed securities within the crypto sector present an “opportunity” to expand its digital currency business.