A US-listed Chinese sports lottery company announced that it has entered into a purchase agreement to acquire Bitcoin Mining Equipment (BTC). The transaction includes the issuance of Class A common shares of Class A for $ 14.4 million.

The models include the S17, T17, M20 and S9

According to the announcement, 500.com Ltd has reached an initial agreement to acquire the mining equipment from the unnamed seller outside of the US. The company looks forward to issuing 11,882,860 Class A shares valued at $ 1.21 per share to cover the purchase.

The full transaction amount allows the company to purchase mining equipment, including models such as the M20 from Microbt, the S17, T17 and S9 from the mining hardware manufacturer, Bitmain.

However, 500.com Ltd clarifies that once the transaction is complete, the seller is still satisfied with the transaction.

According to the Chinese company, the transaction is expected to be fully completed before the end of the first quarter of 2021. 500.com Ltd intends to have the machines installed within four weeks.

Stocks exploded on the news

Regarding the technical aspects of the machines, the sports lottery company pointed out that their total hash power capacity is estimated at 918.5 PH / S. They also forecast to generate income from mining activities “in the first half of 2021”.

The company’s shares rose over 11% upon the announcement, hitting a new year high of $ 13.94.

At the end of 2020, the market capitalization of the US-based company Riot Blockchain received a valuation of $ 1 billion. The company is one of several companies that acquired huge amounts of Bitcoin hardware miners in 2020.

The microgrid software company Cleanspark announced on December 22, 2020 that it would buy 1,000 Bitcoin mining machines. The S19 Antminers deployed increase Cleanspark’s mining capacity to 300 PH / s.Since December 11, 2020, the CLSK share rose 100% before the end of the year.

What do you think of mining lotteries? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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