Chinese lottery firm renames and buys Bitcoin mining rig maker for $ 100 million

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Following the acquisition of Chinese mining group Btc.com, China-based lottery company 500.com revealed the purchase of a manufacturer of bitcoin mining rigs, Bee Computing. The Shenzhen firm bought the semiconductor and mining device maker for roughly $ 100 million in a share swap deal.

500.com changes its name to Bit Mining Limited and acquires Bee Computing for $ 100 million

On April 5, 2021, company 500.com Limited (NYSE: WBAI) filed a statement with the U.S. Securities and Exchange Commission (SEC) on a Form 6-K filing. The Shenzhen-based firm explained that it had entered into a share swap agreement with the company Bee Computing. Mining rig maker Bee Computing was established in 2018 and the filing notes that it specializes in 7nm mining machines. Furthermore, after acquiring the well-established mining group Btc.com, 500.com changed its name to “Bit Mining Limited”.

Bee Computing has two mining rigs, both of which use 7nm semiconductors. The Pumbaa mining machine gets around 52 terahash per second (TH / s) and the B2T series gets around 21 TH / s. The most powerful miner has an efficiency rating of around 54 Joules per terahash (J / TH) and the B2T has around 55 J / TH. The share swap deal is noteworthy and totals around $ 100 million for the acquisition.

The company’s SEC filing explains:

In accordance with the share exchange agreement, the company, subject to customary conditions, [y emitirá] on the first closing a total of 16,038,930, or US $ 35 million, of its Class A common shares to the selling shareholders. The first closing is expected to occur in the second quarter of 2021. Subject to meeting the following milestones, the company will issue at the subsequent closing a total of 29,786,600, or US $ 65 million, of its Class A common shares to selling shareholders. . and members of the research and development team.

Bee Computing to continue mass production of ASIC mining rigs

Bee Computing is expected to continue mass production of embedded bitcoin miners with 7 nanometer application-specific integrated circuits (ASICs). The manufacturer should continue to develop machines with 7nm technology and also implement ETH-based ASIC mining machines. Bit Mining also wants Bee Computing to develop litecoin (LTC) mining machines.

According to the filing, Bee Computing has invested more than $ 35 million in R&D projects and leveraged Mediatek Inc., Asia’s largest integrated circuit design company to help with 7nm chips. Yufei Jiang, CEO of Bee Computing says the chips come from Taiwan Semiconductor Manufacturing Company (TSMC).

What do you think about 500.com’s purchase of Bee Computing and its entry into the bitcoin mining space? Let us know what you think on this topic in the comment section below.

https://news.bitcoin.com/chinese-lottery-firm-rebrands-purchases-bitcoin-mining-rig-manufacturer-for-100-million/