Giant SoftBank Invests US$ 50 Million in Bitcoin Mining Business, to Strengthen Data Center

Airdop Blockchain

SoftBank has once again shown its interest in the crypto world by investing US$50 million in Cipher Mining, a company operating in the field of high-performance computing (HPC) data centers. This investment was made by purchasing around 10.4 million Cipher shares.

The fresh funds will be used to accelerate the development of Cipher Mining HPC data center. Cipher Mining CEO, Tyler Page, said this investment came at the right time.

“We are excited to welcome SoftBank as a key investor in Cipher. This investment comes at a crucial time in Cipher growth trajectory, as the Company continues to attract attention for its network of sites and innovative solutions in industrial-scale data centers. "SoftBank focus on innovation in technology and AI development is in line with our vision to establish ourselves as a leader in HPC data center development," said Page, as quoted from the company press release.

With this investment, Cipher Mining further strengthens its position as a major player in the HPC sector. Keefe, Bruyette, & Woods Inc. served as financial advisor on this transaction, while Latham & Watkins LLP served as legal advisor.

Expanding into the Virtual World, Pouring Funds into The Sandbox

Not stopping at Cipher Mining, this company is also making big steps in the metaverse sector. In November 2024, SoftBank led a US$93 million Series B funding round for The Sandbox.

For those who don't know, The Sandbox is an NFT-based platform game that allows users to create virtual worlds and monetize their content.

SoftBank decision to pour funds into The Sandbox further confirms their interest in blockchain technology and virtual worlds.

With huge potential in the digital economy, this move is in line with industry trends that increasingly lead to the integration of blockchain technology with the world of entertainment and digital properties.

The Impact of SoftBank Involvement in the Crypto World

SoftBank investment in various blockchain and crypto-based projects indicates that the company sees long-term potential in this industry. However, not all of their steps always run smoothly.

SoftBank experienced the impact of the collapse of FTX, one of the largest crypto exchanges which went bankrupt at the end of 2024.

SoftBank was among the institutional investors affected by FTX collapse. Together with other investors such as Tiger Global Management and BlackRock, SoftBank faced significant losses due to their investment in the exchange which had become a giant in the crypto world.

Despite this, the company seems to remain optimistic about its investments in the crypto and blockchain sector.

For industry players and investors, SoftBank move could be a signal that the crypto and blockchain market still holds great potential. However, as seen from the FTX case, risks remain.

Will SoftBank continue on this path or take a more cautious approach in the future? It's still an interesting question to follow.

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Disclaimer : This content is offered only for informative reasons. It is not meant to provide legal, tax, investment, financial, or other advice.