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Blockchain Blockbusters: Mining Power Group Acquires Northway Mining While Bitmain Secures $15 Billion in Pre-IPO Funding

Aug 8, 2018
by Justin Hughes

Mining Power Group has acquired the majority ownership interest of upstate New York technology company, Northway Mining, LLC. Northway offers highly specialized data center hosting services for thousands of crypto-mining machines. Northway will become a subsidiary of Mining Power Group.

The acquisition includes real estate assets under the ownership of Northway as well as a future building which Northway will continue plans to develop and expand into. Also included in the deal are thirty acres of surrounding flat land in New York State that will be used for the future expansion of more Northway mining facilities, likely numbering into the thousands.

data center summitUnder the terms of the transaction, not all of which were released, Northway will maintain its current management and the Company will continue to invest its own funds for the expansion of its industrial facilities. According to the official press release announcing the deal, Mining Power Group is reportedly also in negotiations for the similar acquisition of a majority interest in an unrelated privately-held company involved in the development of products for the crypto-mining industry. Results of these negotiations will be announced at a later date, as will the numbers inherent to the initial acquisition.

Dror Svorai, President and Chief Executive Officer of Power Mining Group said in the press release, “This is something that we had been working on for a while and we are so glad to finally complete this transaction. We have not only entered the data center market… but we have done it in a big way that allows us to immediately begin a rapid ramp up of revenues.

In other crypto-currency news, after some exciting news last week about a major expansion into the U.S. market in Texas, Chinese bitcoin mining giant Bitmain has now acquired a value of $15 Billion USD after the closure of a pre-Initial Public Offering funding round which closed on Saturday. The injection of funds included investments from Tencent (developer of WeChat, China’s largest social media platform) and Japan’s Softbank, who is also a 15% stakeholder in Uber.

Bitmain, who occupies around 75% of the bitcoin mining chip market, is expected to launch its IPO on the Hong Kong Stock Exchange in September (thanks to a major hint from its CEO in June during an interview with Bloomberg), with an estimated valuation of $30 Billion USD. “Bitmain is trying very hard to maintain its advantage,” Bitman’s CEO Jihan Wu told Bloomberg.

aSoon after, Canaan Creative, another giant in the Chinese crypto-mining arena who likely occupies 15% of the bitcoin mining chip will also launch its own IPO on the same stock exchange.

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