Coolpad Group, a prominent Shenzhen-based telecommunications equipment company listed on the Hong Kong Stock Exchange, has announced a strategic move into the cryptocurrency mining sector. The company revealed in a recent regulatory filing its decision to allocate over HK$106 million (approximately $13.5 million USD) towards the purchase of Bitcoin mining rigs, marking its entry into what it describes as the "web 3.0 digital currency business."

According to the filing, Coolpad Group plans to acquire 2,700 crypto mining rigs from Hong Kong-based JingYun Intelligent Technology Limited, with deployment targeted for North America. While the document did not specify the manufacturer of the equipment, this investment is aimed at significantly boosting Coolpad's current computing power from 873,000 TH/s to an estimated 1,504,800 TH/s.

The transaction is expected to be completed within three months, highlighting Coolpad's swift action in adapting to the evolving landscape of digital assets.

Expansion into Crypto Sector Signals Strategic Pivot

Coolpad Group first signaled its interest in the crypto space back in early May with a $28 million investment plan. This initiative was primarily focused on acquiring shares of publicly traded Bitcoin mining companies listed on Nasdaq. Among the targeted entities were CleanSpark (CLSK), ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), and Hashdex Bitcoin Futures ETF (DEFI).

In its regulatory filings, Coolpad emphasized the growing market trends and the promising future of blockchain technology and crypto assets. The company views investments in listed securities within the crypto sector as an opportunity to expand its digital currency business ambitiously.

Coolpad Group's recent moves underscore its proactive approach to diversifying its business portfolio and seizing opportunities in emerging technologies. By entering the crypto mining sector, the company aims not only to enhance its technological capabilities but also to position itself strategically amidst the ongoing digital transformation in global financial markets.