Chinese ICT Firm splurges on blockchain mining hardware

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Zhongjia Bochuang, a Shenzhen Stock Exchange-listed company valued at roughly $900 million based on its market capitalization, decided to ramp up its investment in the digital currency mining sector. The company announced plans to buy millions’ worth of specialized ASIC mining machines from the hardware manufacturer MicroBT. 

Founded in 1997, ZJBC is one of China’s oldest and largest ICT companies. Its principal business centers on artificial intelligence and cloud communication capabilities. ZJBC’s Chairman, Wu Ying, is reportedly an early Investor in MicroBT from back in 2019 through his investment fund.

MicroBT’s Whatsminer ASIC mining series has seen increased demand as of late, thanks to the company’s Whatsminer M30S ++ (112TH / s), which is one of the highest performing ASIC on the market today.

In a statement, the firm said it plans to spend up to 1 billion yuan, or around $155 million, on MicroBT’s WhatsMiner ASIC mining rigs over the next two years. As part of the strategic partnership, MicroBT agreed it would prioritize ZJBC equipment. Vice versa, ZJBC will prioritize MicroBT’s hardware when making purchases. 

“The scale for the first year will be no less than 20,000 units with the first batch to be delivered by May 2021 with no less than 2,000 units,” ZJBC said.

ZJBC’s ambitious plan is also not entirely surprising, given its existing investment in the blockchain mining field. ZJBC’s wholly-owned subsidiary, Changshi Telecommunication, has been involved in building and maintaining blockchain mining farms in Sichuan. 

Both parties have also agreed to create a high-level communication system and organize discussions and seminars to ensure smooth collaboration. In the future, the two parties agreed to work together to develop industry-related applications in artificial intelligence, edge computing, 5G micro base stations, and blockchain technology. 

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”