A leading online sports lottery service provider in China 500.com Limited (NYSE: WBAI) has announced on Monday that it intends to acquire bitcoin mining machines in the first quarter of 2021.
The company said it has entered into a definitive purchase agreement with undisclosed sellers to purchase the mining machine with a total consideration of approximately $14.4 million.
According to the announcement, 500.com expects to issue 11,882,860 newly-issued Class A ordinary shares valued at US$1.21 per share.
If the transaction is successful, it will lead to the purchase of S17, T17, M20s and S9 models of the bitcoin mining machines, which the company plans to install within four weeks.
The current price of bitcoin is $35,684.59, climbing up by 2.61% in the last 24 hours. Bitcoin has a current market cap of $663.65B and market volume of $100.58B. In the last 24 hours, bitcoin has dropped to $30,305.30, and experienced a high of $36,621.58 .Currently, 18,598,256.25 bitcoins are in circulation.
Stats and Image from Coin Desk
The total hash power capacity of the bitcoin mining machines acquired in the transaction is estimated to be approximately 918.5 petahertz per second, and it hopes to begin generating revenue for the company in the first half of 2021.
500.com is one of the pioneers of online sports lottery service provider in China, and is one of two entities that have been approved by the Ministry of Finance to provide online lottery sales services on behalf of the China Sports Lottery Administration Center, which is the government authority that is in charge of the issuance and sale of sports lottery products in China.