Kaixin plans crypto mining expansion amid Bitcoin’s new all-time high

Chinese electric vehicle maker Kaixin is seeking a strategic shift with plans to buy a controlling stake in a cryptocurrency mining operation in the Middle East.

The announcement marks a major leap forward and diversification from the traditional automotive business.

Kaixin in advanced stages of acquisition

According to Kaixin’s press release, the Beijing-based company is in the advanced stages of evaluating the potential acquisition.

The target operation features cost-effective Bitcoin mining machines and provides comprehensive cloud hosting services to meet growing industry demand.

Kaixing stated that the most important advantage of the facility lies in its access to stable, long-term energy sources. This is crucial to maintaining profitable operations, the company said.

This element of energy security appears to be the main driver behind the choice of strategic location.

Kaixin currently operates as a leading new energy vehicle manufacturer in China. The company has professional teams in R&D, production and marketing.

Unlike many traditional automotive companies, Kaixin’s move into cryptocurrency mining represents a different and bold strategic turning point.

The company aims to use its existing expertise in sustainable operations as it expands into the crypto sector.

Kaixin stated in the press release:

“This acquisition represents our commitment to exploring new growth paths while maintaining our core automotive excellence.”

However, the exact timeline for when the deal will close remains unclear as the company continues its evaluation process.

With Bitcoin (BTC) creating all-time highs in the last few days, the value of the global crypto market has surpassed $3.04 trillion. Besides BTC, some other altcoins have also exhibited double-digit increases in the last seven days.