Leading Chinese lottery services provider 500.com has expanded its reach into the cryptocurrency space with the acquisition of Blockchain Alliance Technologies, which owns BTC.com.
Under the deal, 500.com will supply 44,353,435 new Class A ordinary shares—which represents around 10% of its overall share capital—to Blockchain Alliance in exchange for all of its shares.
The deal is expected to be finalized by April 15, 2021.
BTC.com offers cryptocurrency mining pool services, cryptocurrency wallets, and information on cryptocurrencies.
Aside from the initial payment of shares, if the BTC.com mining pool business accomplish a net operating profit within the fiscal year ending December 31, 2021, 500.com will release more shares, up to a maximum of 22,176, 718 if the profit totals $20 million or more.
But if the business takes a loss during the year, 500.com may repurchase shares in the initiall payment for around $0.00005 each. The number of shares up for purchase depends on how big the loss is, with a maximum of 10% of the shares for a loss of $10 million or more.
This deal represents the latest of several moves 500.com has made to become a key player in the cryptocurrency sphere, starting with its appointment of Xianfeng Yang as its new chief executive in January.