Chinese lottery service 500.com acquires Bitcoin mining pool BTC.com
Chinese sports lottery service 500.com has acquired a large bitcoin (BTC) mining pool, BTC.com.
500.com, according to a report at 16. February entered into a share swap agreement with Blockchain Alliance Technologies, a Cayman Islands-based holding company.
As part of the deal, 500.com will acquire the entire mining pool business of Bitdeer Technologies Holdings, including its domain name and crypto-currency portfolio. The domain name and wallet both operate under BTC.com, but they are owned by Bitdeer, the parent company of Blockchain Alliance.
In accordance with the Announcement, the first transaction under the Share Exchange Agreement will take place on or before the 15th day following the date of the Announcement. April 2021.
500.com and Blockchain Alliance have also entered into certain net operating income agreements. If BTC.com achieves net operating profit in the year ending December 2021, 500.com must issue additional shares to the blockchain alliance. Assuming a minimum net operating income of $20 million, up to 22 million additional shares of Class A common stock may be issued.
Conversely, if BTC.com’s mining pool business reports a net operating loss for the same period, 500.com will have the right to repurchase certain shares of Class A common stock held by Blockchain Alliance.
500.com is a New York Stock Exchange (WBAI) listed company offering a range of online lottery services. The company recently got into the crypto-currency business. In early February, 500.com bought 5,900 bitcoin mining machines for $8.5 million. In January, 500.com announced that the subscription price for the private placement would be set in both US dollars and bitcoin.