- 500.com just acquired BTC.com mining pool.
- The acquisition was done through a share agreement.
- BTC.com will get 10% of 500.com Class A ordinary shares in the agreement.
Breaking news, former Chinese online lottery company 500.com has just acquired mining pool BTC.com. BTC.com is currently the third-ranked mining pool in the Bitcoin ecosystem but was once ranked first.
500.com has acquired BTC.com’s mining operations, trading name, and cryptocurrency wallet via a share agreement. Under the agreement, 500.com will give BTC.com about 10% of its Class A ordinary shares. In addition, 500.com will give BTC.com a further 5% of its Class A shares by the end of this operating year. 500.com will issue the extra shares only if BTC.com earns a US$20 million net profit.
However, if BTC.com operates at a loss, 500.com reserves the right to purchase back some of the shares. The loss generated must be no less than US$10 million for the provision to apply.
BTC.com’s mining pool started in 2016 and has a hash rate of about 17 EH per second. The mining pool allows users to sign up to use its app and website to manage their mining operations. BTC.com supports multiple cryptocurrencies including BTC, BCH, ETH, and LTC.
The deal comes at a time after the once top-ranked mining operation has been riddled with problems. BTC.com is one of the casualties of the 2018 bear market. While also having suffered from in-fighting and some bad investments.