A U.S. publicly-listed Chinese sports activities lottery agency is extending its arms into the crypto trade by asserting one other associated maneuver. 500.com Ltd introduced it has acquired Btc.com, the well-known bitcoin mining pool.
Jihan Wu Is the ‘ Biggest Beneficial Owner’ of the Mining Pool
Per the announcement, the web lottery service supplier purchased the corporate from Blockchain Alliance. 500.com carried out the transaction by issuing newly class A shares, representing virtually a 10% stake within the listed Chinese firm.
According to the filings, 500.com Ltd made the share alternate settlement with Blockchain Alliance Technologies Holding Company, a Cayman Islands-based agency. Currently, the Chinese lottery supplier large has a market capitalization of $860 million, and the transaction specifies some situations.
One of them consists of the earnings generated by Btc.com, which in case that such internet figures are a minimum of $20 million by the tip of 2021, the present shareholders will rise up to a 5% stake in 500.com Ltd.
It signifies that a most of 22,176,718 extra “Class A Ordinary Shares” shall be issuable, said the announcement. The first transaction underneath the settlement is anticipated to occur on or earlier than April 15, 2021.
Bitdeer Technologies Holding Company is the operator of the pool. Moreover, its “largest helpful proprietor” is presently is Bitmain co-founder Jihan Wu.
Btc.com claims to have over 10% of bitcoin (BTC) hashrate, changing into one of many high 5 largest mining swimming pools globally.
Not the First Crypto-Related Business Maneuver Made by 500.com
But 2020 wasn’t a superb yr for the Chinese lottery service supplier. According to the yearly figures, the corporate posted round $29.9 million in losses over 2020.
However, 500.com began the yr on a bullish be aware on account of a big bitcoin mining-related acquisition. As information.Bitcoin.com reported earlier in January, the corporate reached an preliminary settlement to accumulate BTC mining machines from an unnamed non-U.S. vendor.
The full quantity of the transaction — $14.four million — will enable the corporate to accumulate the machines, together with such fashions because the M20s from Microbt S17, T17, and S9 models from Bitmain.
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