Bit Mining is looking to exit China’s market in response to the recent government crackdown on mining.

Shenzhen-based crypto mining firm, Bit Mining, is raising $50 million to fund an expansion out of the Chinese market.

Announced on July 12, the firm has entered into an agreement with select institutional and accredited investors to raise $50 million through a private placement.

Bit Mining is raising the funds in response to the Chinese Communist Party’s exposedcrypto.com/news/china-crypto-ban-a-huge-opportunity-for-canada-mining-group-head-says” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/exposedcrypto.com/news/china-crypto-ban-a-huge-opportunity-for-canada-mining-group-head-says/amp”>crackdown on crypto mining in May, noting plans to “acquire additional mining machines, build new data centers,” and expand its infrastructure overseas.

Bit Mining is owned by NYSE-listed Chinese lottery service provider 500.com and operates the major mining pool, BTC.com.

As part of the private placement, Bit Mining will offer 100 million Class A ordinary shares at a purchase price of $5.00 per 10 shares.

Each share comes with a warrant that investors can redeem to purchase additional shares in the future. The warrants will have a set term of three years and will be exercisable six months from the date of issuance, with an exercise price of $6.81 per 10 Class A ordinary shares.

New York-based investment bank, H.C. Wainwright & Co., is acting as the sole placement agent for the offering, with the private placement expected to close on July 16.

Related: exposedcrypto.com/news/former-bitmain-ceo-jihan-wu-regulatory-crackdown-may-be-good-for-crypto” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/exposedcrypto.com/news/former-bitmain-ceo-jihan-wu-regulatory-crackdown-may-be-good-for-crypto/amp”>Former Bitmain CEO Jihan Wu: Regulatory crackdown may be good for crypto

The fallout from China’s mining crackdown has seen exposedcrypto.com/news/crypto-miners-eye-cheap-power-in-texas-but-fears-aired-over-impact-on-the-grid” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/exposedcrypto.com/news/crypto-miners-eye-cheap-power-in-texas-but-fears-aired-over-impact-on-the-grid/amp”>numerous Chinese miners eye the state of Texas for its cheap electricity. According to a June 24 article from Nikkei Asia, Bit Mining has plans to invest $26 million into building a 57-megawatt data center in the crypto-friendly state.

Cointelegraph reported on June 22 that Bit Mining successfully delivered itsexposedcrypto.com/news/denied-electricity-world-s-5th-largest-mining-pool-leaves-china-for-kazakhstan” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/exposedcrypto.com/news/denied-electricity-world-s-5th-largest-mining-pool-leaves-china-for-kazakhstan/amp”> first batch of mining machines to Kazakhstan. The first batch included 320 mining machines with an estimated total hash rate capacity of 18.2 petahash per second (PH/s).

The firm added that a second and third batch totaling 2,600 mining machines would be delivered by July 1.