BitPlanet Turns Bitcoin Treasury into Miner with $10M Rig Purchase
BitPlanet, Korea's first regulated Bitcoin treasury company, has taken a bold step by shifting its strategy from buying Bitcoins to producing them. The company paid $9,999,228 for 1,204 Bitmain hydro-cooled rigs, which are now operational in Oman and Paraguay.
The fleet is expected to produce nearly double the monthly target of 7 BTC at current difficulty levels, with a guidance that reflects net costs. This move marks a significant change from the company's previous approach of buying Bitcoins at market rates, which limited its growth due to cash flow constraints.
According to CEO Lee Sung-hoon, mined coins will be booked as revenue, and the company has hired outside lawyers and accountants to handle contracts, disclosures, and currency procedures due to a lack of domestic precedent. This template is expected to be followed by other KOSDAQ names.