Cryptocurrency mining has drawn all the headlines in China and Hong Kong this week after smugglers got caught and companies made significant acquisitions — China Market Watch
Cryptocurrency mining was the focus of blockchain communities in Hong Kong and China this week after customs authorities in the former seized 300 Nvidia GPUs — which smugglers allegedly planned to deliver to mining farms in China.
Furthermore, companies are looking to enter the industry by acquiring mining farms. NYSE-listed lottery firm 500.com acquired Hong Kong-based Bee Computing, which follows its earlier acquisition of BTC.com in February. At the same time, Nasdaq-listed Future FinTech Group Inc. acquired Nanjing Ribensi Electronic Technology Co. for $9.1 million.
Meanwhile, on the DCEP front, the People’s Bank of China conducted technical testing with the Hong Kong Monetary Authority this week.
Here’s everything you may have missed regarding these stories, and more, in this week’s edition of China Market Watch from OKEx Insights.
Nvidia GPUs seized by Hong Kong customs authorities
During an anti-smuggling operation on April 2, the Hong Kong Customs and Excise Department seized 300 Nvidia CMP 30HX graphics cards — a new line of GPUs used for cryptocurrency mining.
- The current value of the 300 Nvidia graphics cards is an estimated 2 million HKD. It is speculated that smugglers planned to deliver the graphic cards to mining farms in China.
- Under the Import and Export Ordinance of Hong Kong, the smugglers may face a maximum fine of 2 million HKD and seven years of imprisonment.
500.com acquires Bitcoin mining manufacturer
Chinese online lottery company 500.com submitted a filing to the United States Securities and Exchange Commission regarding its $100 million acquisition of Hong Kong-based Bitcoin mining manufacturer Bee Computing.
- 500.com will execute its latest acquisition as long as certain conditions are met by Bee Computing’s R&D team. For instance, it needs to develop high-performance ETH and LTC ASIC mining machines.
- 500.com has been shifting its core business away from online lotteries to cryptocurrency mining. The company previously acquired mining pool BTC.com in February.
Future FinTech Group Inc. acquires Nanjing Ribensi Electronic Technology Co.
Nasdaq-listed software company Future FinTech Group Inc. announced the acquisition of Nanjing Ribensi Electronic Technology Co. for $9.1 million.
The target firm currently owns a Bitcoin mining farm in Sichuan, which has the capacity to operate 30,000 Bitcoin miners.
- The low cost of energy in Sichuan is the main driver behind Future FinTech’s decision to acquire Nanjing Ribensi Electronic Technology.
- To execute the acquisition, Nanjing Ribensi promised to achieve set goals for net profits, as well as maintain the mining farm’s operation for at least six-to-eight years.
DCEP technical testing conducted in Hong Kong
According to Wang Xin, the director of the People’s Bank of China’s research bureau, the central bank has conducted technical testing for DCEP with the Hong Kong Monetary Authority.
- The PBoC and HKMA are conducting regular technical tests of DCEP in order to prepare for large-scale cross-border payment trials in the future.
- The central banks of Hong Kong and China will use DCEP and the Multiple Central Bank Digital Currency Bridge in their cross-border payment testing.
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