A Nasdaq-listed company with a diverse range of shipping businesses is branching into Bitcoin mining as the cryptocurrency’s value has skyrocketed over the past year.
In an exchange filing on Wednesday, Sino-Global Shipping America said it wants to enter the crypto sector to enhance its traditional logistics platform through “leveraging innovative technologies”.
The company’s share price rose by 68.6% to $7.96 on Thursday afternoon.
"We are thrilled to expand to Bitcoin mining," chief executive Lei Cao said. "The management team is ready to take our business to the next level by executing this expansion strategy.
“We believe that Sino-Global is well positioned to continue growing its core business while expanding to Bitcoin mining operations."
Bitcoin’s value against the greenback has soared fivefold since January 2020, partly fuelled by stimulus money in the US and other countries.
Several companies have sought to introduce digital currencies into the global supply chain in recent years, but no project is known to have gone beyond the pilot stage.
New chiefs
Sino-Global’s announcement came after the company named Xintang You as chief technology officer and Lei Nie as chief operating officer in late January.
From 2011 to 2020, You served as chief executive of Shenzhen Rayshine Technology and Shenzhen Ethermicro Technology, two suppliers to Chinese crypto mining giant Bitmain.
Nie was a senior architect at IBM China before joining Sino-Global as principal IT engineer in 2017.
“Lei and Xintang bring with them experience in information technology, including in particular blockchain and cryptocurrency expertise, which we plan to explore to find ways to leverage these and other innovative technologies in our business platform,” Cao said.
“Such technologies may be key to the next steps in expanding our traditional logistics service expertise."
Launched by Cao as a shipping agency in 2001, New York-based Sino-Global has expanded into various shopping segments over the years.
The company offers freight logistics, container trucking, inland transport management, and dry bulk shipping services in China and some other countries, according to its website.
Last year, Sino-Global acquired a 75% stake in Mandarine Ocean, a Shanghai-based company that operated 14 bulkers.
Describing itself as a “non-asset based” company, Sino-Global is known to prefer chartering rather than owning ships outright.
