The training company Meten EdtechX ventures into Bitcoin mining in the midst of China’s restrictions and buys the corresponding equipment.
Can this business model catch on in China? Because private tutoring schools in Beijing are a thorn in the side of the Chinese government and they have banned teaching, companies like Meten EdtechX have to look for new business areas.
The China-based company, which is also listed on the Nasdaq and previously offered English lessons, is now venturing into the field of Bitcoin mining despite an official ban.
A press release from Meten EdtechX said that 1,500 new generation bitcoin mining rigs are to be bought for $ 12 million from AGM Holdings, a relatively new manufacturer.
Meten EdtechX dared to go public in March of last year through a SPAC deal. In September, the company announced for the first time that it was planning to enter the mining of cryptocurrencies.
New shares brought Meten EdtechX USD 60 million
A subsequent issue of new shares raised nearly $ 60 million. In its announcement of the capital increase in September this year, Meten stated that it is considering purchasing mining equipment as well as NFT assets, and is also planning to set up its own mining farm. Nobody at Meten said where this farm should be.
We are currently looking for low cost natural gas, oil mines and other suitable locations in Canada. The company assumes that it will provide mining and custody services for other mining service providers in the future,
according to the information provided by the Chinese company at the time. However, MetenEdtechX also openly admitted that it had no experience and was not sure that its Bitcoin mining would be successful.