Chinese language lottery companies supplier 500.com has continued its enlargement into the world of cryptocurrency with the acquisition of Blockchain Alliance Applied sciences, which owns BTC.com.
Beneath the deal, 500.com will subject 44,353,435 new Class A extraordinary shares – representing round 10% of its general share capital – to Blockchain Alliance in trade for all of its shares.
The deal is anticipated to shut by 15 April, 2021.
BTC.com, Blockchain Alliance’s flagship product, affords cryptocurrency mining pool companies and cryptocurrency wallets, in addition to details about cryptocurrencies.
Along with the preliminary fee of shares, if the BTC.com mining pool enterprise information a internet working revenue within the fiscal yr ending December 31, 2021, 500.com will subject additional shares, as much as a most of twenty-two,176,718 if the revenue totals $20m or extra.
Nonetheless, if the enterprise makes a loss in the course of the yr, 500.com might repurchase shares within the preliminary fee for a value of simply $0.00005 every. The quantity of shares accessible to be repurchased depends upon the scale of the loss, with a most of 10% of the shares for a lack of $10m or extra.
The deal marks the most recent of a number of strikes by 500.com to grow to be a participant within the cryptocurrency sphere, beginning when it brought in Xianfeng Yang as its new chief executive in January.
Yang has expertise within the cryptocurrency business, having beforehand led the development and operation of the Loto Interactive’s main information centre, which primarily dealt with cryptocurrency mining.
500.com introduced it will acquire a majority stake in Loto Interactive later in January, rising its share within the firm from 33.7% to 54.2% in a deal price round HK$105m (£9.9m/€11.2m/$13.5m).
After saying its intention to purchase around $14.4m worth of Bitcoin mining machines from unnamed sellers in January, it later agreed in February to acquire up to 15,900 more machines from two extra sellers.
500.com’s share value has skyrocketed for the reason that announcement of the acquisition. After closing at a value of $20.00 on Monday, 500.com opened at $33.35 immediately, a 66.8% improve. Its shares are at the moment buying and selling at $30.43.
