05.07.2025 07:21
The world-renowned esports organization Ninjas in Pyjamas (NiP), under its parent company NIP Group, has made a significant strategic shift, venturing into the lucrative world of Bitcoin mining. This bold move aims to generate substantial revenue streams beyond the traditional esports arena.
NIP Group plans to achieve this ambitious goal by deploying a substantial network of mining rigs boasting a combined hashing power of 3.11 EH/s. This impressive computational capacity is projected to yield approximately 60 Bitcoins monthly, translating to a potential gross income of around $6.5 million based on current market values. However, the final net profit will depend significantly on operational costs, including electricity consumption and other overhead expenses.
To oversee this new venture, NIP Group has formed a dedicated subsidiary, the Digital Computing Division. This division will not only manage the day-to-day operations of the mining infrastructure but also be responsible for strategic investment decisions concerning future Bitcoin mining expansions. While the company hasn't yet detailed its Bitcoin valuation strategies, the long-term implications of this investment are substantial.
Co-founder and co-CEO Hicham Chahine, in a LinkedIn post, explained the rationale behind this diversification. Following the company's public listing last year, NIP Group sought to cultivate additional income streams beyond its core esports and entertainment businesses. Chahine highlighted Bitcoin mining as a particularly compelling opportunity, describing it as both innovative and aligned with the company's evolving digital focus. He proclaimed the transformation of NIP Group from solely an esports company to a broader digital infrastructure company, strategically positioned within the evolving entertainment landscape, underscoring their substantial investment in real computing power and operational capabilities.
Despite the strategic vision, the market's response has been less than enthusiastic. Since the announcement on Tuesday, NIP Group's share price has experienced a notable 17% decline, settling at $2.13. This represents a considerable drop from its July 2024 peak of $17.76, a staggering 88% decrease. This negative market reaction underscores the inherent risks and uncertainties associated with the volatile cryptocurrency market. Nevertheless, NIP Group's foray into Bitcoin mining mirrors a growing trend among institutional investors, following the established model pioneered by companies such as MicroStrategy, showcasing a wider adoption of Bitcoin as a strategic asset.
