Major acquisitions are still happening in the cryptocurrency industry. In the latest acquisition news, a lottery service has purchased a famous cryptocurrency mining pool.
Share Exchange Agreement
500.com, a sports lottery service based in China has reported in an official announcement made on Tuesday, the 16th of February that it has bought BTC.com, one of the prominent BTC mining pools in the industry.
As per the announcement, the acquisition occurred through a share exchange agreement that took place between Blockchain Alliance Technologies Holding Company and 500.com in the Cayman Islands.
According to the terms and conditions of the agreement, 500.com will take into control Bitdeer Technologies Holding Company’s complete business of mining pool. It will include a digital currency wallet and the name of the domain. The crypto wallet and the domain both are currently being run under the mining pool BTC.com. Bitdeer Technologies Holding Company is actually the parent firm of Blockchain Alliance.
The company has also revealed further details regarding this acquisition, such as when the firm will be paying money for this acquisition. The company stated in the announcement that the first transaction for this acquisition is likely to take place before or on the 15th of April, 2021, as a part of the share exchange agreement.
Also read:Agreements Regarding Net Operating Profits
In addition to the share exchange agreement, there are some other agreements that have taken place between these two firms, such as agreements concerning net operating profits. In case the net operation of BTC.com goes into profit by the end of Dec 2021, 500.com will be required to issue extra shares to the mining pool’s former parent company, as part of these agreements.
While on the other hand, if the net operation of BTC.com goes into loss within the same time period, then, 500.com will have the right of repurchasing additional ordinary shares of Class A from Blockchain Alliance. As a New York Stock Exchange (NYSE)-listed firm, 500.com provides customers with a wide variety of lottery services online. The firm has also started making its presence in the digital currency industry as well. At the beginning of the current month, the company had announced a major acquisition in which it bought a total of 5,900 BTC mining devices for an amount of $8.5M.
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