NIP Group (Nasdaq: NIPG), acquires on-rack crypto mining machines
NIP Group Inc. (“NIPG” or the “Company”) (NIPG), a leading digital entertainment company, today announced it has entered into a definitive asset-purchase agreement (the “Agreement”) to acquire on-rack crypto mining machines (the “Products”) from Fortune Peak Limited and Apex Cyber Capital Limited (together, the “Sellers”). These Products are currently used for Bitcoin mining and are expected to begin generating significant Bitcoin mining revenue for the Company upon closing of the acquisition. To support this initiative, NIPG has established a dedicated Digital Computing Division to manage the operations of the acquired Products and lead the future development of the Company’s compute infrastructure capabilities. Importantly, this transaction marks a strategic extension of NIPG’s business into the digital infrastructure space.
The Products, consisting of data center capacity with a combined hash rate of 3.11 EH/s, are currently utilized for Bitcoin mining operations with expected production of approximately 60 Bitcoins per month, and will continue operating immediately after closing of the proposed transaction. Under the terms of the Agreement, NIPG will pay the consideration for the Products through issuance of approximately 119,553,439 Class A ordinary shares of the Company to the Sellers. In connection with the consummation of the proposed transactions contemplated by the Agreement, the Company and the Sellers will also enter into an investor rights agreement to define certain rights and obligations among them with respect to the Company.
The closing of the proposed transaction is expected to occur on or before September 30, 2025, and is subject to customary closing conditions. There can be no assurance that the closing conditions will be satisfied nor that the proposed transaction will be completed before that date or at all.
Hicham Chahine, Co-CEO of NIP Group, commented, “This transaction represents a strategic expansion of our platform into digital infrastructure, a space where we see long-term opportunities to support compute-intensive innovation. While we remain committed to our entertainment and gaming roots, we believe owning foundational computing capacity will become increasingly essential to harness next-generation, scalable business opportunities such as high-performance computing (HPC), artificial intelligence (AI), advanced gaming technologies, and other compute-heavy applications, for example, that add value for our stakeholders. Bringing meaningful compute power under our umbrella, together with the operational expertise of our new partners, gives us a relatively low-risk pathway into Bitcoin mining and lays the groundwork for us to capture future digital infrastructure opportunities.”