EQS-News / 23/03/2021 / 11:25 UTC+8
Xinyang Maojian privots to crypto market with new joint venture following in Riot Blockchain's footstep
On 16 Mar 2021, Xinyang Maojian Group ("Xinyang Maojian")(SEHK:362) has made a voluntary announcement that it has
collaborated with Heihe Shark to establish a joint venture company to enter the crypto market.
Bitcoin, the world's best-known cryptocurrency, has climbed more than 50% and hit USUSD60,000 in just a few months. The
digital currency has suffered plenty of wild price swings since its launch but investors have been flocking to
cryptocurrencies during the pandemic-driven volatility on global stock markets. The rally sparked high-net-worth
individuals as well as institutions' ambition to enter the crypto market, and Xinyang Maojian was no exception.
Early in Feb 2021, Tesla (TSLA) announced that it has bought USD1.5 billion worth of Bitcoin and its plan to start
accepting Bitcoin as a payment method for its products. The moves further increased the prices of cryptocurrencies and
Bitcoin prices surged to new highs following Tesla's announcement. Tesla's moves have also implied that cryptocurrency,
Bitcoin in particular, has evolved into an asset class.
Large corporations such as Riot Blockchain (Nasdaq: RIOT), MassMutual and Meitu, Inc. (SEHK:1357), have stepped into
the crypto market. In Oct 2017, Riot Blockchain has announced its plan to shift focus to operator in the blockchain
ecosystem with a particular focus on the Bitcoin and Ethereum blockchains. The stock price of RIOT experienced a
tenfold increase to USUSD60.
High electricity consumption is usually involved in the Bitcoin mining progress resulting a relatively high cost.
Therefore, many Bitcoin mining projects have been moved to remote areas such as Inner Mongolia to lower the costs. This
region, a favorite among the industry because of its cheap power, has banned cryptocurrency mining and declared it will
shut all such projects by April 2021. The new regulation, however, has given Xinyang Maojian a golden opportunity to
stand out from its competitors. Firstly, the joint venture is in the processing area that is located in Heihe City
which is very close to Russia. The weather is extremely cold and therefore lowering the energy demand for heat
dissipation which further drives down the mining costs. Secondly, the processing park is the only region in China that
uses Russian electricity, and therefore it is less sensitive to the domestic energy policies.
Cryptocurrency continues to captivate investors worldwide and stocks associated with cryptocurrencies have also been on
an upswing. Xinyang Maojian's move to enter the crypto market, together with its competitive advantages, its stock
price will certainly skyrocket in the near future.
23/03/2021 Dissemination of a Marketing Press Release, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
March 22, 2021 23:25 ET (03:25 GMT)
