A US publicly listed Chinese sports lottery company is expanding its business into the crypto industry by announcing another related measure. 500.com Ltd announced that it has acquired the well-known Bitcoin mining pool Btc.com.
Wu Jihan is the “biggest beneficiary” of the mining pool
According to the announcement, the online lottery service provider purchased the company from the Blockchain Alliance. 500.com completes the transaction by issuing new Class A shares, which account for nearly 10% of Chinese listed companies.
According to the document, 500.com Ltd has reached a stock exchange agreement with the Cayman Islands-based company Blockchain Alliance Technologies Holding Company. Currently, the Chinese lottery provider giant has a market value of US$860 million, and the transaction specifies certain conditions.
One of these includes the profits generated by Btc.com. If these net figures are not less than US$20 million by the end of 2021, current shareholders will receive a 5% stake in 500.com Ltd..
The announcement stated that this means that up to 22,176,718 additional “Class A ordinary shares” will be issued. The first transaction under the agreement is expected to occur on or before April 15, 2021.
Bitdeer Technologies Holding Company is the operator of the pool. In addition, its “largest beneficial owner” is currently Bitmain co-founder Wu Jihan.
Btc.com claims to have a Bitcoin (BTC) hash rate of over 10% and has become one of the top five mining pools in the world.
Not the first encryption-related business operation conducted by 500.com
But for Chinese lottery service providers, 2020 is not a good year. According to annual data, the company will lose approximately $29.9 million in 2020.
However, due to major acquisitions related to Bitcoin mining, 500.com started to be bullish this year. As news.Bitcoin.com reported earlier in January, the company reached a preliminary agreement to purchase BTC mining machines from an unnamed non-US seller.
The full amount of the transaction ($14.4 million) will enable the company to purchase machines, including M20 from Microbt S17 and T17 and S9 models from Bitmain.
What do you think of the latest 500.com encryption-related acquisitions? Let us know in the comments section below.
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