(Yicai Global) Sept. 7 -- Chinese cryptocurrency mine Kuangshi Yunsuan has received a strategic investment of tens of millions of yuan from domestic investor GeekBeans Capital, online media outlet Jiemian News reported.

The mine will use the funds for business expansion, recruitment and standardization of machine rooms.

Kuangshi Yunsuan hopes to build large-scale mines through rapid scaling, said Ren Mingyue, founder and chief executive. Ren is one of China's earliest bitcoin pioneers and has been involved with more than ten bitcoin mines.

Expanding the scale of mines will help significantly to reduce marginal costs such as mine machine purchases, electricity, space and management, he added.

Ren aims to setup a vertical industry chain based on mining, bitcoin banking, wealth management, and quantitative transactions.

Kuangshi Yunsuan, founded in the first half of this year, claims to be profitable. The firm has four self-built large mines in the western Chinese provinces of Sichuan, Yunnan, Xinjiang and Inner Mongolia, where electricity prices are relatively low.

The biggest cost for Bitcoin mines is electricity which makes up 60 to 70 percent of operating costs.