Chinese sports lottery 500.com has acquired a large Bitcoin (BTC) mining pool, BTC.com.
According to an announcement released on Tuesday, 500.com entered into a stock exchange agreement with Blockchain Alliance Technologies in the Cayman Islands.
As part of the agreement, 500.com will acquire the entire Bitdeer Technologies Holding Company’s mining pool business, including domain names and cryptocurrency wallets. The domain name and wallet both work under BTC.com, but are owned by Bitdeer, the parent company of the Blockchain Alliance.
According to the announcement, the first agreement under the share exchange agreement is expected to take place on 15 April or before.
500.com and Blockchain Alliance have also entered into certain agreements regarding net operating income. If BTC.com records net operating income for the fiscal year ending in December, 500.com must issue additional shares to the Blockchain Alliance. Assuming a minimum net operating income of $ 20 million, a maximum of 22 million additional Class A shares may be issued.
In contrast, if the BTC.com mining business registers a net operating loss during the same period, 500.com will be entitled to repurchase some of the A shares owned by the Blockchain Alliance.
500.com is a listed company in New York (WBAI) that offers a wide range of lottery services over the Internet. The company has recently moved into the crypto industry. At the beginning of February, 500.com bought 5900 Bitcoin miners for 8.5 million dollars. In January, 500.com announced that the price for subscribing to the private placement would be calculated in US dollars and bitcoin.