Listed Chinese online sports lottery service provider 500.com announced it granted to acquire the BTC.com Bitcoin (BTC) mining business from Bitmain co-founder Jihan Wu.
500.com is buying the business in exchange for its newly issued class A shares, or around a 10% stake in this lottery provider with a market capitalization of USD 860m.
However, if BTC.com Pool Businesses records a net operating profit of no less than USD 20m this year, the current shareholders should get an additional 5% stake in 500.com.
In case the mining business records a net operating loss this year, 500.com “shall be entitled to repurchase certain Class A Ordinary Shares held by Blockchain Alliance at par value.“
The company announced,
“Most recently, 500.com is actively developing its blockchain-related business, including Bitcoin mining, mining pool business as well as mine construction and operation,”
BTC.com, operated by Bitdeer Technologies Holding Company, a computing power-sharing platform, is a multi-currency integrated mining pool established in 2016 with a hash rate of around 17 EH/s that supports various cryptocurrencies, including BTC, BCH, ETH, and LTC, the company stated.
BitDeer’s most notable beneficially owner is Jihan Wu, BitDeer’s chairman, per the announcement. As reported, Jihan Wu resigned as the CEO and Chairman of Bitmain, a major BTC mining hardware manufacturer.
Furthermore, BitDeer declares that besides BTC.com, “in strategic partnership with Bitmain,” it also aggregates mining pools from Antpool, F2Pool, ViaBTC BTC.top.
BTC.com declares it has over 10% of Bitcoin’s hashrate, computing power, and the fourth largest mining pool.
Notwithstanding its USD 860m market capitalization, 500.com said its net revenues were USD 3.3m, and it suffered an operating loss of USD 29.2m in 2020.
Nevertheless, its shares rallied in February as the company announced its moves into the crypto industry and investments of over USD 20m into the BTC mining business.
“Assuming full delivery of the 15,900 bitcoin mining machines, the Company’s total hash rate will be increased by approximately 1,000 petahashes per second (PH/S),” they replied.
Furthermore, the company stated it would issue new shares and 50% worth around USD 11.5m to be settled in BTC.
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