One of the biggest short squeeze hopefuls in the market right now, Bit Mining (NYSE:BTCM) has been a stock investors have been watching closely of late. Today, BTCM stock is up, along with broader risk assets, to the tune of 4.5% at the time of writing.
Indeed, today’s move may represent the broadly bullish sentiment of the market more than anything. Risk assets continue to bounce back after selloff periods, with BTCM stock seeing tremendous support today. As a company that we’ve pointed out as highly shorted with extremely high borrow-fee rates, it appears retail investors are doing their part to buoy this stock.
Indeed, BTCM stock has made our “top 5 short squeeze opportunities” list for a few weeks in a row. This is a company that continues to defy gravity, trading at twice the valuation it did at the beginning of August. Retail investors are betting on a squeeze, and Bit Mining happens to be one of the best quality options in this regard.
However, today, there’s another catalyst investors are watching closely with Bit Mining. Let’s dive into what’s helping this meme stock head higher today.
BTCM Stock Higher on Ohio Investment
Today, Bit Mining announced that the company entered into a membership interest purchase agreement with Viking Data Centers to develop a crypto mining facility in Ohio. The facility comes with access to as much as 85 MW of power and is currently slated to be completed in early 2022.
For investors in this crypto mining play, such an aggressive ramp-up strategy appears to be what investors want to see. Indeed, there’s no time like the present to ramp up production in the mining world. Crypto prices remain highly volatile; however, investors don’t want to miss out on any spikes that may happen in the near term. Accordingly, having more exposure to companies that are expanding mining capacity is exactly what most hypergrowth investors are after these days.
This site is expected to come with a price tag of $12.1 million for Bit Mining, as per the company’s joint venture agreement. Approximately $10.8 million will be paid in cash to Viking, with the remaining portion paid as either stock or cash moving forward.
Indeed, investors seem to like this deal, considering Bit Mining’s recent purchase agreement for more than 1,000 miners earlier this year. Having not only a place to put these but also access to a reliable power source is a big deal. Accordingly, this stock is seeing continued momentum today on a rather green day in the markets.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.