500.com enters the Bitcoin mining chip business

China’s leading sports lottery service, 500.com, continues to make strategic moves to enter the Bitcoin and cryptocurrency mining industry

This time, the progressive purchase of Bee Computing, a company founded in 2018 and recognized for manufacturing application-specific integrated circuits (ASICs) with a size of 7 nanometers.

As announced by 500.com in a press release, the progressive purchase of the company is subject to certain conditions, and if these are not met, the transaction may not complete.

500.com states that, if the agreements are honored, it would offer Bee Computing shareholders, developers and researchers, an aggregate equivalent to USD 100 million in Class A shares, in exchange for all the shares of Bee Computing. This represents 8.18% of the total value of 500.com.

For this to happen, Bee Computing must continue to mass-produce mining equipment that includes the 7-nanometer ASIC chip. It will also have to develop and mass produce a new generation of these equipment, as well as high-performance ASIC equipment for mining Ethereum (ETH), as well as Litecoin (LTC).

500.com announced that it had acquired the entire inventory of mining equipment from Bee Computing on February 2, 2021, and these machines are expected to be delivered next April, they say.

They note that they are planning to invest no less than $ 30 million in cash in Bee Computing to boost the development of chips to mine cryptocurrencies.

To ensure the success of your business development, 500.com appointed a new Chairman of the Board of Directors of the company. Man San Vincent Law, is one of the founders of the company, who from April 5, 2021 will enter these new functions.

The new director of 500.com specified in the statement some of the strategies that they have followed since last December 21, 2020.

First of all, he referred to the acquisition of new and second-hand mining equipment for Bitcoin and Ethereum. Second, it commented on the acquisition of a cryptocurrency mining facility powered by hydroelectric power in Chinese territory, with 435 MW of power on behalf of the company Ganzi Changhe Hydropower Consumption Service Co. Ltd.

In third place, mentioned the purchase of BTC.com, one of the largest mining pools in China, as well as the homonymous web domain and the cryptocurrency portfolio they offer, which was reported by CriptoNoticias during the month of March.

Some mining companies are already listed on the US stock markets, such as Greenidge, which is also a producer of electricity, and is preparing to list on Nasdaq, as well.

As CriptoNoticias reported, Bitcoin mining companies could appreciate on the stock markets, watching their shares rise before a new “gold rush” for the mining of the main cryptocurrency.