Bitcoin mining pool BTC.com is getting acquired by Chinese sports-lottery company 500.com

Quick Take

  • Bitcoin mining pool BTC.com, operated by Jihan Wu’s BitDeer Technologies, is getting acquired by Chinese sports-lottery company 500.com.
  • The deal is subject to certain closing conditions. The first closing is expected to occur by April 15, 2021.
advertisement

Bitcoin mining pool BTC.com, operated by Jihan Wu's BitDeer Technologies, is getting acquired by Chinese sports-lottery company 500.com.

NYSE-listed 500.com announced the news on Tuesday, saying that it has entered into a share exchange agreement with Blockchain Alliance Technologies, the parent company of BitDeer, for the deal.

As part of the deal, which is subject to certain closing conditions, 500.com will issue a total of 44.35 million shares of a par value of $0.00005 to Blockchain Alliance at the first closing, which is expected to occur by April 15, 2021.

The exact number of share issuance will depend on BTC.com's profit or loss situation for the current year-end. If it records a net operating profit of a minimum of $20 million, 500.com will issue a maximum of 22.18 million additional shares.

If BTC.com records net operating loss in the year, then 500.com will be entitled to repurchase certain shares held by Blockchain Alliance at par value. "Assuming such net operating loss is no less than US$10 million, a maximum of 4,435,344 Class A Ordinary Shares shall be subject to such repurchase arrangement," said 500.com, which recently entered the bitcoin mining space.

BitDeer's biggest beneficiary owner is Wu, the company's chairman and former chairman of Bitmain. BTC.com was being operated by BitDeer and Bitmain before Wu stepped down from the Bitmain position last month.

By selling the BTC.com business, Bitmain appears to have a better chance of succeeding at IPO since it won't have cryptocurrencies on its balance sheet. (Bitmain has been trying to go public since 2018).

BTC.com is currently the fifth-largest bitcoin mining pool, based on a 7-day moving average (7DMA) hashrate share, at 14.35 exahash per second (EH/s). Besides bitcoin, the mining pool also supports ether, bitcoin cash, and litecoin cryptocurrencies.

The news appears to be a positive development for 500.com, whose shares are trading up by over 15% at $35.50 in pre-market hours. 

Meanwhile, the crypto mining pool space has started to witness mergers and acquisitions in recent weeks. Earlier this month, Chinese bitcoin mining pool Poolin acquired the hashrate of rival North America-based NovaBlock to expand in the continent.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Digital asset economy fuels instant settlements innovation

Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More