The cryptocurrency boom of late 2020 saw several companies publicly announce major Bitcoin investments. Six months later, how have these high-profile bets fared? Let's examine three prominent cases.
Case Studies of Major Bitcoin Adopters
1. Meitu: $100M Investment Results in $1.1M Loss
Chinese tech company Meitu made headlines in March 2021 with its $100 million cryptocurrency purchase:
Portfolio Composition:
- Bitcoin: $17.3M loss (¥110M)
- Ethereum: $14.7M gain (¥94.96M)
- Net Position: $2.6M loss (¥16.8M)
Market Context: Bitcoin peaked near $65,000 before dropping below $34,000 within months, demonstrating the volatility of crypto investments.
2. 500.com (Now BIT Mining): From Lottery to Crypto Mining
The Chinese lottery company underwent radical transformation:
Key Developments:
- Officially renamed to "BIT Mining" in April 2021
- Q1 2021 revenue grew 532% YoY to ¥19.56M
- Acquired mining subsidiary Lotto Interactive (54.2% stake)
Recent Challenges:
- Chinese mining crackdown forced shutdown of Sichuan operations
- Lost 99.24% of Lotto Interactive's revenue stream
- Pivoting to Kazakhstan for mining operations
3. The9 Limited: Aggressive Mining Hardware Expansion
This gaming company turned crypto miner adopted a different strategy:
Investment Focus:
- $30M spent on existing mining equipment
- $82.8M order for 24,000 Antminers (November 2021 delivery)
- Total mining investment approaching $100M
Global Expansion:
- Established operations in Canada (Alberta and Manitoba)
- Building 20MW power supply for 6,000+ Antminers
- Actively seeking additional overseas mining locations
The Changing Regulatory Landscape
2021 brought seismic shifts in cryptocurrency regulation:
China's Progressive Crackdown
- May 2021: Policy documents restricting crypto trading
- June 2021: Complete shutdown of mining operations in Sichuan
- Affected provinces: Inner Mongolia, Xinjiang, Qinghai, Guizhou
Global Market Reactions
- Bitcoin network hash rate dropped significantly
- Mining companies' stock prices followed BTC volatility
- Blockchain sector stocks declined 7-9% during policy announcements
FAQ: Crypto Investment Concerns
Q: Is cryptocurrency mining still profitable after the China ban?
A: Profitability now depends heavily on electricity costs and local regulations in new mining locations like Kazakhstan and Canada.
Q: What are the risks of overseas mining operations?
A: Key challenges include environmental concerns about power sources, potential regulatory changes, and infrastructure reliability in new markets.
Q: Why did these companies pivot to cryptocurrency?
A: Many were struggling with core business models (Meitu's photo apps, 500.com's lottery decline) and saw crypto as high-growth potential.
Q: How volatile are crypto-related stocks?
A: Extremely volatile—both The9 and BIT Mining saw their stocks mirror Bitcoin's price movements almost exactly.
Future Outlook for Crypto-Adopting Firms
While the path forward remains uncertain, several trends are emerging:
👉 Latest developments in cryptocurrency mining regulations
- Global Relocation: Kazakhstan and Canada are becoming new mining hubs
- Diversification: Companies are exploring multiple crypto assets beyond Bitcoin
- Sustainability Pressure: Environmental concerns may reshape mining practices
The true test for these companies will be whether they can build sustainable crypto operations that withstand both market volatility and regulatory scrutiny. Their ability to adapt to an increasingly complex global crypto landscape will determine whether these bold bets ultimately pay off.