Chinese sports betting service site (500com) has announced that it has reached an agreement with Jehan Wu to buy Bitcoin mining company BTC.com.
to the the report Cryptonews, the Chinese lottery site 500.com, has announced that it will buy BTC.com from its co-founder Jihan Wu in exchange for its newly offered Class A shares.
Class A 500.com shares are equivalent to 10% of the total shares of this site with a market value of $ 860 million.
By agreement, however, if BTC.com’s annual net operating profit of pool companies is not less than $ 20 million per year, the current BTC.com shareholders will receive an additional 5% share of the. 500.com.
But if the mining company suffers a net operating loss this year, 500.com has the right to repurchase a certain portion of its Class A common stock held by the Blockchain Alliance at face value.
500.com said it has recently been actively developing businesses related to its Blockchainchain, including bitcoin mining, mining pools and farm construction and mining.
BTC.com is operated by Bitdeer Technology Holding, a computing power sharing platform. This site is an integrated mining pool that was established in 2016.
BTC.com has a hash rate of 17 exagges per second and supports a variety of digital currencies including Bitcoin, Bitcoin Cash, Ether and Litecoin.
According to BTC.com, this mining pool has more than 10% of the bitcoin hash rate and is the fourth mining pool.
Ceyhan Wu is the largest for-profit owner and chairman of Bitdir. He stepped down in January as CEO and CEO of BitcoinMine, a major maker of bitcoin mining hardware.
In addition to BTC.com, it has brought together other mining pools such as Antpool, F2Pool, ViaBTC and BTC.top in a strategic partnership with BitMin.
Despite its market value of $ 860 million, 500.com said its net income was $ 3.3 million and that it had an operating loss of $ 29.2 million in 2020.
However, its stock rose sharply in February after the company announced it had entered the digital currency market and invested more than $ 20 million in bitcoin mining.
500.com has announced that with the full transfer of 15,900 bitcoin mining machines, the company’s hash rate will increase by about 1,000 petas per second.
The lottery site also said it plans to issue new shares, 50 percent of which, valued at about $ 11.5 million, will be settled in bitcoin.