Bitcoin Mining Pool BTC.com Acquired By NYSE Listed Sports Lottery Firm 500.com (WBAI)
Chinese online lottery company 500.com has purchased Bitcoin mining pool BTC.com which is run by Jihan Wu’s BitDeer Technologies.
The NYSE listed 500.com (WBAI) revealed the news on Tuesday stating that it had inked a share exchange deal with Blockchain Alliance Technologies, which owns BitDeer.
According to the deal, which is subject to some closing conditions, the sports-lottery firm will offer 44.35 million shares valued at $0.0005 to Blockchain Alliance by April 15, 2021.
However, the number of shares offered to Blockchain Alliance will be determined by the amount of profit, or loss, that BTC.com makes at the end of the year. The deal states that if the mining firm nets $20 million in profit, then 500.com has to offer no less than 22.18 million shares on top.
The deal also states that if the mining firm makes an operating loss by year-end, the betting firm has the right to buy back a certain amount of shares from the Blockchain Alliance at market value. The agreement said,
“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.”
The former chair of Bitmain, Jihan Wu, who also owns BitDeer, will be the largest beneficiary of the deal. Wu relinquished his position as the head of Bitmain earlier this year to bring an end to a long-lasting ownership wrangle in the company.
The selling of BTC.com is seen as a move to help Bitmain succeed with its pursuit of IPO as it will not have any crypto on its accounting records. The firm has been pursuing an IPO since 2018. Currently, BTC.com is ranked as the fifth biggest bitcoin mining firm in the world. The company also mines Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) cryptocurrencies.