Chinese language sports activities lottery firm 500.com (NYSE: WBAI) just lately announced it might buy one other batch of ASIC mining machines as a part of its pivot into growing its blockchain-related enterprise.
The New York Inventory Trade-listed on-line sports activities lottery agency signed a definitive settlement to buy 5,900 ASIC miners for 55.2 million yuan (round $8.5 million). As a part of the deal, 500.com pays a efficiency bond of RMB2,000 per machine for the primary 5,000 ASIC rigs or RMB10 million (roughly US$1.5 million) in mixture.
500.com didn’t disclose the model and mannequin of the miners being obtained. The corporations count on all of the ASIC miners to be delivered within the second quarter of 2021.
Below the settlement framework, 500.com additionally agreed to acquire as much as 10,000 further ASIC mining machines in 2021. The exact quantity is topic to availability. If all 15,900 ASIC mining machines are delivered and put in, the agency’s whole hash charge is projected to extend by 1,000 petahashes per second (PH/S).
Its board first signaled 500.com’s radical diversification of its business model in December amid a shake-up of its senior management workforce and a brand new CEO’s appointment. In January, the agency formally introduced its entry into the digital currency mining enviornment by shopping for $14.4m (£10.7m/€11.9m) price of ASIC mining machines from an unnamed vendor.
Final week, the agency introduced it was rising its possession share in Hong Kong-based Loto Interactive Restricted, bringing its stake from 33.7% to round 54.2%. The deal will see 500.com pay a complete consideration of round HK$105m ($13.5m) for 169,354,839 Loto Interactive shares, whereas Loto Interactive is anticipated to grow to be a subsidiary of 500.com after it’s full.
The moonshot pivot comes with a good quantity of uncertainty. 500.com has not acknowledged definitively which blockchain it might be supporting. If it goes down the FOMO path of block reward mining as a substitute of reworking into transaction processing, any income beneficial properties will probably be short-lived.
See additionally: TAAL’s Jerry Chan presentation at CoinGeek Reside, The Shift from Bitcoin “Miners” to “Transaction Processors”
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