Chinese lottery firm 500.com has bought up hardware worth $14.4 million to aid its efforts mining Bitcoin amid the cryptocurrency's soaring value.
500.com has acquired the machines from an unnamed non-US seller with the purchase funded by Class A ordinary shares.
To satisfy the needs of the deal, 500.com will issue 11,882,860 new Class A shares which are valued at $1.21.
The machines acquired are of several makes, including S17, T17, S9, and M20. Should there be any delays to the deal, 500.com cautions that the deal may close at the end of the first quarter.
However, the company is optimistic about its prospects with regards to Bitcoin. At current rates, the company predicts that its mining efforts should become profitable halfway through 2021.
The hardware 500.com has ordered has a 918.5 petahashes per second potential, enabling the company to leverage the computing power necessary to keep excavating the digital gold known as Bitcoin.
While the prospect of Bitcoin riches is within grasp, 500.com has been struggling with some financial issues of its own.
Company revenue fell by 37.1% year-over-year in the third quarter last year, and its Swedish operating license expired in January 2020, all of this amid decreased interest in lottery products globally.
If you are not into mining but use Bitcoin, you may want to head for the available Bitcoin casinos, including Bitcasino, FortuneJack, and 1xBit, and have a bit of fun there instead of sweating your hardware trying to excavate Bitcoin!
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