- The Chinese company has partnered with Blockchain Alliance Technology in shares Exchange Agreement to buy BTC.com
- The first transaction under the arrangement is expected to occur on or before 15th April 2021
- China accounts for over 50% of the world’s hash rates
- In spite of setbacks, China’s Bitcoin sector still generates billions of dollars in revenue
The number one sports lottery service in China, 500.com has announced that it has entered into a partnership with Blockchain Alliance Technology in a Share ExchangeAgreement. This agreement will see 500.com go on to procure BTC.com which is among the top crypto mining pools in the world.
This purchase involves the domain name of BTC.com and its distinct cryptocurrency wallet in a deal rumored to be worth millions of dollars. The first transaction on the platform after the purchase is scheduled to be on the 15th of April, 2021.
A Closer Look At The Details
500.com is a publicly listed company on the New York Stock Exchange with a valuation of $860 million and it makes this recent acquisition a huge deal. The company is a newsletter reiterated its desire to expand its crypto presence.
It said, “500.com is actively developing its blockchain-related business, including Bitcoin mining, mining pool business as well as mine construction and operation.”
As per the agreement reached, if BTC.com Pool Businesses record a net operating profit in this fiscal year which ends on December 31, 2021, then, the Company will issue additional Class A Ordinary Shares to Blockchain Alliance at par value.
A press statement by 500.com gave pertinent insights into the inner workings of the agreement. An excerpt states that:
Assuming such net operating profit is no less than US$20 million, a maximum of 22,176,718 additional Class A Ordinary Shares shall be issuable, which additional class A Ordinary Shares represent approximately 5% of the Company’soutstanding shares as of January 31, 2021. BTC.com Pool is a multi-currency integrated mining pool established in 2016 that has a hash rate of around 17 EH/s and supports various cryptocurrencies, including BTC, BCH, ETH, and LTC.
On The Flipside
- The People’s Bank of China (PBOC) has previously stated that would block access to all domestic and foreign cryptocurrency exchanges and ICO websites due to rising cases of fraud
- This comes amidst the country’s continues move to develop a central bank digital currency
- The digital yuan, as it is popularly known, is already being tested in parts of China, even though the country still maintains an unfriendly stance towards cryptos
China’s Crypto Mining Industry
The exponential growth of the Chinese crypto mining industry has been impressive giving the stifling government regulations and sanctions that it faces regularly. Today, China has some of the world’s largest crypto-currency mines and contributes to 50% of the world’s hash rate.
The move by 500.com in acquiring BTC.com will spur tremendous growth in the already booming crypto mining sector of China. The annual turnover of the sector is pegged at over 10 billion dollars which is pretty impressive for a country that faces stern legislation.