Bitcoin Mining Platform Moxian Divests Chinese Subsidiaries Amid Local Regulations
Moxian, a Nasdaq-listed company engaged in bitcoin mining and related services in the United States, announced on August 15 that its wholly-owned subsidiary has transferred all equity interest of Moxian (Hong Kong) Limited to Liu Jiantao, a resident of China, in light of the country’s recent tightening of controls on gaming and increasing concerns over personal data privacy.
Liu is an affiliate of Hao Qinghu, a former Director and Chairman of the company until his resignation from the Board of Directors in March 2022. Hao, who was appointed as a Director of the company in January 2016, had been instrumental in the establishment and operations of Moxian Hong Kong and its wholly-owned subsidiaries in China, which were primarily engaged in mobile payment applications and digital advertising in the Games Channel of the New Xinhua App.
The divestment of Moxian Hong Kong and its wholly-owned subsidiaries is not considered a significant transaction to the company, given that those entities had been operating at a loss since their inception and their carrying values in the consolidated financial statements in each of the last three fiscal years were not substantial. The mobile payment application business ceased in September 2018, whilst advertising income has fallen sharply in recent years.
Since early March 2022, the company has operated bitcoin miners in New York and Georgia in the United States. With this divestment, it no longer conducts operations in China and is currently in the process of relocating its principal executive offices to the US.
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Forrest Deng, the Executive Director and Chief Executive Officer of the company, also expressed his optimism about the crypto industry. “Despite the recent fluctuation in bitcoin prices, we believe the longer-term outlook for crypto currencies remains positive. We will also seek other business development and investment opportunities as and when they arise,” Deng said.