NIP Group, a subsidiary of Pajamas’ (NIP)’s world-renowned electronic sports organization Ninjas, has announced it has entered the Bitcoin mining industry.
Pajama esports giant ninja enters Bitcoin mining: Aiming to produce $6.5 million in BTC every month
The company aims to produce 60 BTC per month by purchasing a series of mining rigs with a total computing power of 3.11 EH/s (Exahash/Second) that corresponds to a production value of around $6.5 million at its current price.
However, this production represents total revenue. Net income may differ if expenses such as electricity and operating expenses are deducted.
The NIP Group has established a new unit to manage mining operations and make strategic decisions regarding mined BTCS: Digital Computing Division.
The company has not yet provided details on how it will value Bitcoin, but the new division will be responsible for future mining investments.
“We’re not just gaming companies anymore.”
Hicham Chahine, co-founder and co-CEO of NIP Group, said in a LinkedIn statement that after the company was published last year, they would like to create revenue models in areas other than eSports and Entertainment.
Chahine emphasized that Bitcoin mining stands out as a “relevant and innovative” region and will continue to expand in this area.
“We are no longer just gaming companies. We are transforming ourselves into a digital infrastructure company worthy of the entertainment era,” Chahine said.
However, investors do not seem to welcome the decision so far. Since its announcement on Tuesday, the company’s shares have fallen 17% to $2.13. They have fallen 88% since their peak at $17.76 in July 2024.
The NIP Group move includes institutional companies participating in the trend of building Bitcoin reserves, similar to MicroStrategy’s pioneering model. The model, led by MicroStrategy founder Michael Saylor, has grown its company stock by 3,300% and transformed it into a leading crypto investor.
However, experts recall that this approach is risky because it is volatility and that if a company is having problems, it may be necessary to sell BTC.
The new direction for the NIP Group shows that the gaming giant is about to grow not only through content production, but also through digital infrastructure and asset management.
*This is not investment advice.