NIP Group, the parent company of the esports team Ninjas in Pyjamas, has entered the Bitcoin mining sector by acquiring an undisclosed number of mining rigs. The company anticipates producing around 60 BTC monthly, valued at approximately $6.5 million. However, the high operational costs associated with electricity may impact profitability. NIP Group has also launched a Digital Computing Division to oversee its mining activities and manage the acquired Bitcoin. Despite this strategic move, the company's stock has dropped 17% since the announcement, and it has plummeted 88% from its peak of $17.76 in July 2024. Hicham Chahine, co-CEO, emphasized the company's shift from solely gaming to becoming a digital infrastructure entity. This trend aligns with other public companies exploring crypto reserves, inspired by the success of firms like Strategy, which transformed its business model through Bitcoin investments. However, experts caution that this could lead to significant risks if companies are compelled to liquidate their crypto assets. Read more AI-generated news on: https://app.chaingpt.org/news

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