US-Listed Chinese Lottery Firm Plans $14.4M Move Into Bitcoin Mining
Chinese sports lottery firm 500.com (NYSE: WBAI) announced Monday that it has entered into a purchase agreement to acquire bitcoin mining machines.
- 500.com said it expects to issue $14.4 million-worth of its Class A ordinary shares as consideration to acquire the bitcoin mining machines from an unnamed seller from outside the U.S.
- The company will issue around 11.8 million shares valued at $1.21 per share, with the transaction expected to be completed in the first quarter of this year.
- If the deal goes ahead the acquisition would see 500.com acquire S17, T17 and S9 mining devices from Bitmain and M20s from MicroBT.
- Total hash power capacity of the machines is estimated to be approximately 918.5 petahertz per second.
- The timeline for the installation of the bitcoin mining machines would be within four weeks of acquisition, with revenue from bitcoin mining expected to start rolling in during the first half of 2021.
- Shares of the company traded up 11% on the news.
Read more: Bitcoin Mining Difficulty Hits Record High Amid Miner Revenue Surge
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