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Following the acquisition of the Chinese mining pool Btc.com, the China-based lottery company 500.com revealed the purchase of a bitcoin mining rig manufacturer Bee Computing. The Shenzhen firm purchased the semiconductor and mining device manufacturer for roughly $100 million in a share exchange agreement.
500.com Changes Name to Bit Mining Limited and Acquires Bee Computing for $100 Million
On April 5, 2021, the company 500.com Limited (NYSE: WBAI) registered a statement with the U.S. Securities and Exchange Commission (SEC) in a Form 6-K filing.The Shenzhen-based company spoke of entering into an interchange agreement with a company called Bee Computing.The mining rig manufacturer Bee Computing was established in 2018 and the filing notes that it specializes in 7nm-powered mining machines.Additionally, 250.com changed its name to Bit-Mining Limited after purchasing the well-known mining pool Btc.com.
Two mining rigs at Bee Computing, which utilize 7nm semiconductors.The Pumbaa mining machine gets around 52 terahash per second (TH/s) and the B2T series gets around 21 TH/s.An efficient bitcoin miner has a rating of around 54 joules per terahash (J/TH) and an inefficient bitcoin miner has a rating of around 55 J/TH.The share exchange agreement is noteworthy and totals around $100 million for the acquisition.
The company’s SEC filing explains:
Pursuant to the share exchange agreement, the company shall, subject to customary conditions, [and will] issue at the first closing an aggregate of 16,038,930, or US$35 million worth, of its Class A ordinary shares to the selling shareholders. The first closing is expected to occur in the second quarter of 2021. Subject to satisfaction of the following milestones, the company shall issue at the subsequent closing an aggregate of 29,786,600, or US$65 million worth, of its Class A ordinary shares to selling shareholders and research and development team members.
Bee Computing to Continue Mass ASIC Mining Rig Production
Bee Computing is expected to continue the mass production of bitcoin miners incorporated with 7-nanometer application-specific integrated circuits (ASIC).Manufacturing machines with 7nm technology and adopting ETH-based ASIC mining machines will be important for the manufacturer.Bit Mining also wants Bee Computing to develop litecoin (LTC) mining machines.
According to the filing, Bee Computing has invested over $35 million into R&D projects and leveraged Mediatek Inc., the largest IC design company in Asia to help with the 7nm chips.According to Yufei Jiang, CEO of Bee Computing, this chip has been developed by Taiwan Semiconductor Manufacturing Company.
Would you have any thoughts on 500.com's purchase of Bee Computing and entry into bitcoin mining?Let us know what you think about this subject in the comments section below.
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