Shenzhen, China-based online gaming supplier 500.com Ltd. announced that it has entered into a definitive purchase with certain non-U.S. persons identified only as the “Sellers: under which 500.com will issue approximately US$14.4 million worth of its Class A ordinary shares as consideration to acquire bitcoin mining machines owned by the Sellers.
The company expects to issue 11.9 million new Class A ordinary shares valued at US$1.21 per share, corresponding to US$12.10 per American Depositary Share (ADS) based on the closing trading price of the company’s ADS on January 8, 2021, the last trading day prior to the date of the agreement, for a total consideration of approximately US$14.4 million to acquire four models of bitcoin mining machines. This transaction is subject to the completion of certain conditions precedent to the closing of the transaction.
Assuming no delay to the timetable, the transaction is expected to close in the first quarter of 2021. Upon the consummation of the transaction, the company plans to install all bitcoin mining machines acquired from the Sellers within four weeks. The company expects to begin generating revenue from bitcoin mining in the first half of 2021.