According to a statement, the Chinese company 500.com announced the purchase of BTC.com. Certainly one of the largest cryptocurrency mining pool in the world.
In particular, the transaction was handled by 500.com Limited, an online sports lottery company. And, it was carried out as part of a stock exchange agreement with Blockchain Alliance Technologies Holding Company, a company based in the Cayman Islands.
Said agreement contemplates executing the transfer of the entire mining operation from BTC.com to 500.com. According to the announcement, the first transaction under the stock swap agreement is expected to occur on or before April 15, 2021.
As part of the deal, Chinese company 500.com will acquire the entire mining pool business from Bitdeer Technologies Holding Company. Including the domain name and a cryptocurrency wallet.
It should be noted that both the domain name and the wallet operate under BTC.com. But, they belong to Bitdeer, which is the parent company of the Blockchain Alliance.
For their part, 500.com and the Blockchain Alliance have also entered into certain agreements related to net operating earnings. If BTC.com records a net operating profit in the fiscal year ending December 2021, 500.com will have to issue additional shares to the Blockchain Alliance.
For example, assuming the minimum amount of net operating profit is $ 20 million, a maximum of 22 million additional Class A common shares can be issued.
Conversely, if the BTC.com mining pool business records a net operating loss during the same period, 500.com will be entitled to repurchase certain Class A common shares held by the Blockchain Alliance.
First of all, BTC (Bitdeer Technologies Company), is one of the most important mining pools. It was established in 2016, it has a mining service for various cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
In fact, its users can explore information with statistics on Blockchain in real time. Also, to manage your mining business on the same website.
Additionally, its biggest beneficiary is Jihan Wu, who recently stepped down as CEO and president of Bitmain. After a long dispute with a co-founder.
«The disagreement between Micree Zhan and myself was finally resolved amicably. And most importantly, constructively».
The 500.com company
Next, 500.com is a company listed on the NYSE (WBAI). It offers a variety of online lottery services.
By the way, the company has recently been moving into the cryptocurrency industry. In early February, 500.com bought 5,900 Bitcoin mining devices for $ 8.5 million.
By way of closing, with the participation of more companies like 500.com in the Bitcoin mining industry, China could reaffirm its global leadership in this market.
I say goodbye with this phrase from Henry Kissinger: «The leader’s task is to take people from where they are to where they haven’t been».