Publicly-Listed Lottery Company to Buy $14.4M Worth of Bitcoin Mining Machines

A U.S. listed Chinese sports lottery firm announced that it has entered into a purchase agreement to acquire bitcoin (BTC) mining machines. The deal involves the issuing of $14.4 million worth of 500.com Class A ordinary shares.

Models Include S17, T17, M20s and S9

According to the announcement, 500.com Ltd reached an initial agreement to acquire the mining machines from the unnamed non-U.S. seller. The firm looks forward to issuing 11,882,860 Class A shares valued at $1.21 per share to cover the purchase.

The full amount of the transaction will allow the company to acquire mining machines, including such models as the M20s from Microbt S17, T17, and S9 from the mining hardware manufacturing giant Bitmain.

However, 500.com Ltd clarifies that the transaction is still subject to the sellers’ satisfaction when the transaction concludes.

Per the Chinese firm, the transaction is expected to be fully completed before the end of the first quarter of 2021. 500.com Ltd aims to install the machines within four weeks.

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Shares Skyrocketed on the News

Regarding the machines’ technical aspects, the sports lottery firm pointed out that its total hash power capacity is estimated to reach 918.5 PH/S. Also, they forecast to begin generating revenue from the mining activities “in the first half of 2021.”

The company’s shares surged over 11% on the announcement, registering a new yearly high at $13,94.

At the end of 2020, the U.S.-based firm Riot Blockchain’s market capitalization obtained a $1 billion valuation. The company is one of several enterprise companies that acquired massive quantities of bitcoin hardware miners in 2020.

The microgrid software company Cleanspark’s announced on December 22, 2020, that they would purchase 1,000 bitcoin mining machines. The deployed S19 Antminers will increase Cleanspark’s mining capacity to 300PH/s. Since December 11, 2020, CLSK shares climbed 100% before the end of the year.

What do you think about lotteries getting into mining? Let us know in the comments section below.

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