In a critical step in the cryptocurrency industry, traded in Hong Kong, Ruihe Shuzhi Technology has signed a joint venture with Bitmain, one of the world’s most successful producers, to deploy cloud computing power services. This will make Ruihe an official newcomer in Bitcoin mining, not limited to digital marketing and AI solutions.
Ruihe Shuzhi Technology is an old company dealing in digital intelligence and marketing solutions and has announced a partnership to create another branch that addresses cryptocurrency mining.
Ruihe Shuzhi Technology was founded in 2004 and is reportedly serving some of China’s largest and largest financial institutions with big data analytics, artificial intelligence and digital marketing solutions. Instead of purchasing and operating expensive physical mining rigs, Ruihe uses Bitmain’s cloud-based infrastructure. This allows businesses to reach remote computing power without incurring huge upfront costs or operational risks.
Under the agreement, Ruihe pays Bitmain service fees and regularly acquires Bitcoin mining income. In the future, companies may also be able to purchase their own mining equipment, which could further enhance operations and save costs.
About Ruihe Shuzhi Technology and Bitmain
The company has a strong customer base consisting of the largest banks. With around 900 employees, the company has established itself as a technology-driven company. With an established customer base that includes around 900 employees and the largest bank, the company has become a technology-focused company.
Bitmain is a company specializing in application-specific integrated circuit (ASIC) mining hardware, and its most well-known product line is Antminer, founded in Beijing in 2013. In addition to hardware, Bitmain is diversifying its cloud mining offering, enabling institutions and retail customers to engage in Bitcoin mining without having to maintain equipment.
Increased institutional investment in crypto mining
Ruihe’s entry into the crypto mining industry indicates an increasing trend in institutional involvement in the digital asset industry. Specifically, cloud mining offers relatively low entry points, especially for companies that lack previous mining experience. This removes the need for infrastructure investments that can cost millions of dollars, and reduces the risks associated with energy use and hardware efficiency.
According to industry observers, the move will open doors to impacts and potential risks on other markets
The partnership offers Ruihe new revenue opportunities, but there is no risk. The profitability of cloud mining depends on a variety of factors, including the market price of Bitcoin, the difficulty of the network, and the energy costs that cloud mining providers such as Bitmain will incur. Also, regulatory policies are an important consideration, with mainland China continuing to restrict cryptocurrency trading and mining, while Hong Kong is more tolerant.