Bluebird Mining Enters Bitcoin Market With 63.7 PH/s Streaming Deal

Bluebird Mining, a UK-listed gold exploration company, has announced a strategic move into the Bitcoin market through a new streaming deal. This initiative marks a significant shift in the company's strategy, blending its traditional gold mining operations with the emerging cryptocurrency sector. The streaming deal allows Bluebird to gain exposure to Bitcoin without directly engaging in mining activities, thereby mitigating risks associated with direct mining and providing a steady flow of Bitcoin.

Under the terms of the deal, Bluebird has purchased 756 ASIC mining machines, a mix of Bitmain and Canaan rigs, with a combined hashrate of 63.7 PH/s. These machines will be resold to partners, and in return, Bluebird will receive a share of the Bitcoin generated by those machines over the next three years. This approach enables the company to benefit from the value appreciation of Bitcoin without the need for extensive infrastructure or technical expertise.

The streaming model, commonly used in the gold industry, involves funding part of a mine in exchange for a portion of future production. Bluebird is applying this model to the crypto world, where it funds mining operations in exchange for a share of the mined Bitcoin. This strategy allows Bluebird to earn over 30 BTC through this deal without needing to handle the day-to-day operations of mining.

Bluebird's move into Bitcoin is part of a broader plan to adapt its treasury strategy for the future. The company has traditionally focused on gold and silver projects, with gold resources estimated at around 1.8 million ounces. However, with Bitcoin becoming a more accepted asset globally, Bluebird is diversifying its portfolio to include digital assets. The company is also setting aside £1 million from a previous loan to buy Bitcoin directly, further demonstrating its confidence in the future of digital assets.

Chairman Sath Ganesarajah highlighted that the goal is to create long-term value by building what he calls “asymmetric exposure.” This means investing small amounts now with the hope of big gains later. By blending traditional mining with modern finance, Bluebird is positioning itself to appeal to a new kind of investor who believes in hard assets, whether they come from the ground or the blockchain.

Bluebird plans to share more updates soon, including the appointment of a new CEO and further crypto activities. With both gold and Bitcoin in its toolbox, Bluebird is aiming to attract investors who see value in hard assets and digital currencies alike. This strategic move not only diversifies Bluebird's revenue streams but also positions it as a forward-thinking player in the digital asset space, ready to capitalize on the growing interest and potential of Bitcoin.