After the Swedish organization Ninjas in Pyjamas announced a large-scale expansion of its mining farm network in November, the price of Bitcoin declined by approximately 40% from local highs. The community has already begun joking about the “NIP effect,” but the figures warrant a closer examination.
The Timeline of the Decline
In November, NIP significantly increased its mining infrastructure, expanding the capacity of its farms. At that time, Bitcoin was trading near local peaks. In the following months, the market entered a correction phase, which ultimately amounted to roughly −40% from its high.
Formally, there is no proven causal relationship between the two events. The cryptocurrency market traditionally reacts to macroeconomic conditions, liquidity dynamics, and regulatory developments. However, the timing has fueled numerous memes and ironic interpretations within the esports community.
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Financial Risk for the Organization
Expanding mining operations is a capital-intensive strategy that involves:
- High investment in hardware and energy consumption
- Dependence on exchange rate volatility
- A long payback horizon
During a sharp market correction, the breakeven point can shift substantially. If assets were acquired or mining scaled near market highs, the business model’s margin automatically decreases.
Context for NIP
On the competitive side, Ninjas in Pyjamas have shown inconsistent results on the Tier-1 scene in 2026. The combination of tournament challenges and a risk-heavy financial expansion adds additional pressure on the brand.
At the same time, it is important to distinguish between community irony and economic reality. A 40% drop in Bitcoin is within the typical range of volatility for the crypto market, which has historically experienced even deeper corrections.
A Coincidence in Timing
The decline in Bitcoin’s price following NIP’s mining expansion appears symbolic, but there is currently no basis for claiming a direct connection. It is more likely a coincidence against the backdrop of a cyclical market correction.
For esports organizations, asset diversification can serve as a strategic advantage — however, in the cryptocurrency segment, it is always accompanied by elevated risk and volatility.
