Big Splash in the Bitcoin Pool
In an unexpected twist in the world of cryptocurrency, 500.com, a platform known for its online lottery services, has made waves by acquiring BTC.com, a prominent Bitcoin mining pool. This deal is no small fish; it involves a complex share exchange agreement with Blockchain Alliance Technologies Holding Company, based in the Cayman Islands.
What’s Included in the Deal?
The acquisition includes not just the mining pool business, but also crucial assets like the BTC.com domain name and a cryptocurrency wallet. It’s a sweet deal for 500.com, as these assets belong to Bitdeer Technologies Holding Company, which is under the Blockchain Alliance umbrella.
Timeline and Financial Agreements
According to recent announcements, the closing transaction is anticipated to take place on or before April 15. This will officially mark 500.com’s foray into the realm of Bitcoin mining. But wait, there’s more! The agreement outlines potential profit-sharing scenarios that could keep everyone on their toes.
The Profit and Loss Playbook
If BTC.com rakes in net operating profits over $20 million by the fiscal year’s end in December, 500.com will have to issue up to 22 million additional Class A ordinary shares to Blockchain Alliance. That sounds like a win-win if the profits flow in! However, should BTC.com find itself in the red, 500.com can repurchase some of these shares. Talk about a rollercoaster ride!
500.com’s Crypto Journey
So, what led 500.com down this rabbit hole of blockchain and mining? The company, which is publicly traded on the New York Stock Exchange under the ticker WBAI, has been tightening its grip on the cryptocurrency sector. In February, they snagged 5,900 Bitcoin mining devices for a cool $8.5 million, and earlier this year, they announced plans to settle private placement subscription prices in both U.S. dollars and Bitcoin.
The Future of 500.com in Crypto
Only time will tell if this move pays off in tons of mined Bitcoin or if it becomes one of those “do you remember when?” stories in the crypto world. One thing is for sure: 500.com is diving headfirst into the Bitcoin pool, and we’ll be keeping an eye on how deep they go!
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