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Leading Blockchain infrastructure provider and Bitcoin mining firm BitFury secured a $30 mln investment from a Hong Kong-based fintech company Credit China Fintech to launch a joint Bitcoin venture in China.
The investment will be allocated in the expansion of BitFury’s operations and in the funding of the joint project revolving around the commercialization of Blockchain technology and sale of BitFury’s Bitcoin mining equipment to local miners and companies.
Phang Yew Kiat, Vice-Chairman and CEO of Credit China Fintech stated:
“Blockchain is a fast emerging technology allowing effectively secured value transfer over the Internet. Our collaboration with BitFury will further cement our leadership position in the use of Blockchain technologies across our fintech platforms taking Credit China Fintech to a new level of competitiveness.”
Credit China Fintech operates some of the largest P2P networks and fintech platforms in all of China. BitFury and Credit China Fintech will search for alternative methods of using Blockchain technology to underpin or supplement the base infrastructure of Credit China Fintech’s financial services and applications.
Prior to the establishment of a partnership with BitFury, Credit China Fintech was already exploring Blockchain technology and its potential to reduce costs and optimize complex financial settlements for the company. With BitFury and its enterprise-grade Blockchain infrastructure, the Chinese fintech giant will actively examine the technology and lead the implementation of Blockchain technology.
“We are deeply grateful to Credit China Fintech for both its forward-looking embrace of technology and its confidence in BitFury. China is a visionary country and we are honored to have the opportunity to expand the work of our company to this significant part of the world,” said BitFury CEO Valery Vavilov.
Although it wasn't revealed in the official statement released by BitFury, CNBC stated that the joint venture between BitFury and Credit China Fintech also includes distribution of mining equipment designed and manufactured by BitFury. The two companies have accurately assessed the rising demand for mining equipment in China, especially from existing non-mining companies such as electricity providers that are actively engaging in the mining industry.
In late 2016, Bitcoin angel investor and miner Chandler Guo stated that Chinese electricity companies are purchasing mining equipment from local miners to mine Bitcoin. It is an efficient method of utilizing surplus energy as a for-profit operation.
“Today, the energy companies are jumping on the Bitcoin mining business. Before that, we miners bought electricity from them, the energy companies, to mine Bitcoin. Today, the seller who is selling electricity to us, they are mining Bitcoin by themselves. Energy companies don’t sell electricity to us, they buy mining equipment from us. A lot of energy companies are becoming Bitcoin miners. Even small energy companies can buy at least 1 to 2 Petahashes,” said Guo.
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