The9 Ltd. (NASDAQ:NCTY) a Shanghai-based online game operator, has signed a memorandum of understanding to acquire 70% equity in Hangzhou SuanLi Technology Co. Ltd. (Interhash), a cryptocurrency cloud mining blockchain software-as-a-service company for approximately $7 million.

What Happened: Interhash was founded in 2019 and provides cryptocurrency mining-related management services to a global customer base. According to a statement released by the companies, Interhash has managed AvalonMiners, AntMiners, WhatsMiners, Ipollo miners and Ebit miners for users, and the cumulative Bitcoin hash rate under Interhash's management is approximately 590PH/S.

What Happens Next: The9 is best known as the developer of games "CrossFire Mobile," "Audition," "Fashion Pop" and "Q Jiang San Guo."

This month, it expanded its focus into the cryptocurrency realm, starting with its Feb. 5 announcement of the acquisition of Shenzhen MicroBT Electronics Technology Co. Ltd., a manufacturer of WhatsMiner bitcoin mining machines.

“The9's acquisition of Interhash is a strategic action to expand its cryptocurrency mining business after the continuous purchase of Bitcoin and other cryptocurrency mining machines for accumulating cryptocurrency assets,” said the company in a press statement. “The9's goal is to further provide decentralized cryptocurrency cloud mining services to users on top of its current centralized cryptocurrency mining business. Such one-stop mining provides an easy entry point to worldwide users for cryptocurrency cloud mining, and let the worldwide users share the benefits from cryptocurrencies.”

The9 might also be in the market for new acquisition following its recent announcement of a $100-million standby equity distribution agreement with Cayman Islands-based YA II PN Ltd. to fund its business growth.