The9 Ltd. (Nasdaq: NCTY) surged 23% early Monday to $48.45 per share on news that it is buying an additional $10 million worth of Filecoin (FIL) mining machines.
Currently, The9 owns an independent node on Filecoin blockchain and 8 Pebibyte of effective storage mining power in the Filecoin network.
The firm said it had already deployed its Filecoin mining machines and has started the mining. The9 plans to purchase more mining machines if the token price continues to climb.
Filecoin was launched in 2017 as an open-source decentralized storage network. Mining on Filecoin is based on useful storage. Filecoin’s token FIL now trades at $41.33 per token.
Just a week ago, The9 announced that it was buying an additional 10,500 Bitcoin mining machines, which drove its share price to $27.35 per share.
Formerly a troubled mobile game developer in China traded below the $1 minimum bid per share required by the stock exchange, The9 recently delved into cryptocurrency mining and turned its luck around.
In January, the company received backing from several investors from the digital currency mining industry in what appears to be a miraculous save. From its December level of near $3 per share, NCTY stock today has skyrocketed over 1400%.
The company said it “will continue to purchase different types of cryptocurrencies mining machines with the plan to establish cryptocurrencies mining machine facilities worldwide.”