The cryptocurrency mining landscape is shifting rapidly, and one company making bold moves to consolidate its position across the entire blockchain value chain is BitMining. The New York Stock Exchange-listed firm (NYSE: WBAI), formerly known as 500.com, has announced a strategic $100 million acquisition of Bee Computing, a leading cryptocurrency mining hardware manufacturer. This landmark deal marks a pivotal step in BitMining’s vertical integration strategy, giving it direct control over ASIC chip development and mining equipment production.
👉 Discover how top crypto firms are securing their mining future with in-house hardware solutions.
Strategic Acquisition Strengthens Full-Stack Blockchain Operations
BitMining’s acquisition of Bee Computing is structured as a share exchange valued at $100 million. The transaction includes an initial payment of $35 million, with the remaining $65 million subject to performance milestones. These milestones are tied to critical technological achievements: mass production of 7nm Bitcoin ASIC miners, continued R&D and commercialization of sub-7nm generation chips, and successful development of high-performance, scalable ASIC miners for Ethereum and Litecoin networks.
In addition, BitMining will invest another $30 million directly into Bee Computing to accelerate next-generation semiconductor research. This dual approach—acquisition plus targeted capital injection—demonstrates BitMining’s long-term commitment to innovation and self-sufficiency in mining hardware.
By bringing Bee Computing under its umbrella, BitMining now controls every major layer of the cryptocurrency mining ecosystem: mining pool operations (via its prior acquisition of BTC.com, the world’s third-largest Bitcoin mining pool), energy infrastructure (with three hydropower-powered mining facilities already operational), and now, full-cycle hardware design and manufacturing.
This end-to-end integration places BitMining among a select group of vertically integrated players capable of optimizing efficiency, reducing costs, and responding swiftly to market fluctuations—all essential advantages in today’s competitive mining environment.
Bee Computing: A Technological Powerhouse Backed by Industry Giants
Founded in March 2018, Bee Computing quickly distinguished itself in the crypto hardware space by securing early investment from ASE Group—the world’s largest semiconductor packaging and testing company. This backing not only provided financial stability but also granted access to advanced manufacturing ecosystems and supply chain resources typically unavailable to startups.
Even more significant is Bee Computing’s collaboration with MediaTek (MTK), Asia’s largest fabless chip design firm, in co-developing its 7nm Bitcoin mining ASICs. This partnership has enabled Bee Computing to join a small elite group of companies capable of mass-producing cutting-edge 7nm mining rigs—a critical advantage amid global semiconductor shortages.
With this acquisition, BitMining gains immediate access to proprietary chip architectures, experienced engineering teams, and established fabrication relationships—assets that would have taken years and hundreds of millions of dollars to build organically.
Rising Bitcoin Prices Fuel Surge in Mining Hardware Demand
The timing of this acquisition aligns perfectly with a resurgence in cryptocurrency markets. In March 2025, Bitcoin reached a new all-time high of $61,800 and has since stabilized around $57,000. Analysts project further upside, with many forecasting prices between $80,000 and $100,000 in the coming months.
As Bitcoin’s price climbs, so does demand for mining equipment. Higher block rewards and transaction fees make mining more profitable, driving intense competition for available hardware. However, due to ongoing global chip supply constraints, both spot and pre-order mining machines are in critically short supply.
This "miner shortage" has created a seller’s market where lead times stretch for months and premium pricing is standard. For public mining firms like BitMining, relying on third-party suppliers exposes them to volatility, cost inflation, and delivery risks.
“Facing skyrocketing miner prices and extreme scarcity, we needed a reliable, cost-controlled supply source,” said Yang Xianfeng, CEO of BitMining. “Owning our hardware production puts us at the top of the digital currency value chain. It ensures stable access to computing power and strengthens our position in external partnerships.”
Vertical Integration: The New Competitive Advantage in Crypto Mining
BitMining’s acquisition signals a broader trend in the industry: the rise of vertically integrated mining enterprises. Companies that control their own pools, power sources, and hardware can optimize performance across the stack—reducing downtime, lowering energy costs per terahash, and accelerating deployment cycles.
For example:
- Energy efficiency improves when hardware is designed specifically for low-voltage hydropower environments.
- Firmware-level optimizations allow tighter synchronization between mining rigs and pool software.
- Supply chain resilience increases when production timelines aren’t dependent on external vendors.
These synergies translate directly into higher profit margins and greater adaptability during bear markets or regulatory shifts.
BitMining’s journey toward full integration began with strategic land and infrastructure investments in hydro-rich regions. The purchase of BTC.com expanded its network influence and fee revenue streams. Now, with in-house ASIC development, the company completes its transformation into a comprehensive blockchain technology player.
👉 See how integrated mining operations outperform competitors in volatile markets.
Frequently Asked Questions (FAQ)
Q: What is the total value of BitMining’s acquisition of Bee Computing?
A: The total deal value is $100 million, paid through a share exchange. An additional $30 million investment will support future chip R&D.
Q: Why is controlling mining hardware important for BitMining?
A: Owning hardware production ensures stable supply, reduces costs, enables customization for energy efficiency, and provides a strategic edge over competitors reliant on third-party manufacturers.
Q: What technological milestones must Bee Computing achieve to receive the full payment?
A: Milestones include mass-producing 7nm Bitcoin ASIC miners, advancing to sub-7nm process nodes, and developing viable ASIC miners for Ethereum and Litecoin.
Q: How does this acquisition affect BitMining’s position in the crypto industry?
A: It completes BitMining’s vertical integration—giving it control over mining pools, green energy infrastructure, and now chip design—positioning it as a full-stack blockchain operator.
Q: Is there a connection between Bitcoin price and demand for mining equipment?
A: Yes. Higher Bitcoin prices increase mining profitability, driving up demand for miners. With limited global chip capacity, this often leads to shortages and inflated prices.
Q: What makes Bee Computing technologically unique?
A: Its partnership with MediaTek to co-develop 7nm ASIC chips and early backing from ASE Group gave it rare access to advanced semiconductor ecosystems—making it one of the few firms capable of mass-producing cutting-edge miners.
👉 Learn how leading miners are using proprietary technology to dominate hash rate growth.
The Future of Mining: Control Your Stack or Fall Behind
As the cryptocurrency mining industry matures, control over the entire operational stack—from silicon to software—will separate leaders from followers. BitMining’s acquisition of Bee Computing isn’t just a financial transaction; it’s a declaration of long-term vision.
With proprietary hardware development now under its belt, BitMining is better equipped to navigate market cycles, scale efficiently, and maintain profitability even during periods of price consolidation. As Bitcoin continues its adoption curve—driven by institutional interest, ETF approvals, and macroeconomic trends—the companies that own their infrastructure will be best positioned to thrive.
For investors and industry observers alike, this deal underscores a clear message: in the next era of digital asset mining, self-reliance isn’t optional—it’s essential.