Coolpad Ventures into Bitcoin Mining with $13.5 Million Investment

Coolpad Group, a prominent Chinese telecommunications provider based in Shenzhen and listed on the Hong Kong Stock Exchange, has announced a significant investment in Bitcoin mining. According to a recent filing, the company has allocated approximately $13.5 million for the purchase of Bitcoin mining rigs, marking a substantial pivot towards cryptocurrency within its business model.

The company plans to acquire 2,700 Bitcoin mining computer servers. Although the manufacturer of these rigs was not disclosed, Coolpad has identified JingYun Intelligent Technology, a Hong Kong-based firm, as the supplier. These rigs are slated for deployment across North America, indicating Coolpad’s strategic move to expand its mining operations internationally.

This investment is set to boost Coolpad’s current mining capacity significantly, from 873,000 terahashes per second (TH/s) to approximately 1,504,800 TH/s. This development was first brought to light by Crypto.News, highlighting the growing interest of traditional tech companies in the blockchain and cryptocurrency sectors.

Historically, Coolpad has been known for its involvement in the production and sale of mobile phones and accessories, along with providing wireless application services and property leases. However, since the latter half of 2023, the company has shifted its focus towards the burgeoning field of Web 3.0 and digital currency businesses.

This move into cryptocurrency began in earnest in May when Coolpad unveiled a $28 million investment plan aimed at acquiring shares in crypto asset companies listed on Nasdaq. The targeted firms for these investments include notable names such as CleanSpark, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, and Hashdex Bitcoin Futures ETF.

This strategy reflects Coolpad’s broader vision to integrate more deeply into the digital currency ecosystem, diversifying its investment portfolio beyond traditional telecommunications and technology sectors.

Coolpad’s strategic pivot underscores the increasing trend of established companies exploring and investing in the cryptocurrency space, driven by the potential for high returns and the transformative nature of blockchain technology in various industries.