500.com, one of the leading sports online sports lottery providers in China, announced a strategic business acquisition to buy BTC.com business.
About 10% of the shares of 500.com will be given to the BTC.com parent company, and 500.com will receive the entire share capital of Blockchain Alliance Technologies Limited that owns Bitdeer Technologies Holding Company. BitDeer operates under BTC.com.
Diversifying to The Mining Business
Many companies have acknowledged the power of blockchain and especially cryptocurrencies. After many businesses announced an investment in Bitcoin and other cryptocurrencies, many others are joining the movement.
500.com that provides various online sports lottery services is one of the biggest companies in this section of China. It has been working hard to expand its presence in the blockchain sector and increase blockchain-related services. Bitcoin mining, mining pool business, and mine construction are some of the newest Bitcoin-related companies from 500.com. The latest purchase of BTC.com is a significant milestone in this path.
The announced contract is between 500.com and Blockchain Alliance Technologies Holding Company (“Blockchain Alliance”). According to the announcement, 500.com has agreed to:
“issue an aggregate of 44,353,435 Class A ordinary shares of par value US$0.00005 per share of the Company (the “Class A Ordinary Shares”) to Blockchain Alliance at the first closing, which shares represent approximately 10% of the Company’s outstanding shares as of January 31, 2021, in exchange for the entire outstanding share capital of Blockchain Alliance Technologies Limited held by Blockchain Alliance after the reorganization.”
The contract covers upcoming losses or net operating profits of the BTC.com mining business. Companies will exchange shares if the firm records profit or loss more or less than the defined thresholds.
BTC.com provides various mining services for blockchain enthusiasts. Those users interested in the mining business can use this service to manage their mining business, too. BTC.com offers web-based services and also has an application. It also provides a wallet to users, and they can store their mined Bitcoin in wallets without the need for additional transactions.
500.com finished the announcement detailing:
“Blockchain Alliance has agreed to subject the Class A Ordinary Shares that it receives in the Transactions to agreed lock-up periods in accordance with the Share Exchange Agreement. BitDeer is the parent company of Blockchain Alliance. BitDeer’s biggest beneficially owner is Mr. Wu Jihan, BitDeer’s chairman.”