Introduction of Chinese The cryptocurrency mining company today announced a business restructuring to deconsolidate subsidiaries related to its lottery operations.
VIE structure eliminated
Bit Mining Limited eliminated his Variable Interest Entity (VIE) Structure and related Chinese lottery business for no consideration, the Listed on the New York Stock Exchange (NYSE) Company announced in a press release.
The company’s affiliated subsidiaries under the VIE structure responsible for running the business related to the Chinese lottery were accounted for 2.7 million RMB (400,000 USD) Revenue in the first quarter ended March 31, 2021, 13.6% the total of the company, but a net loss of 9.8 million RMB (1.5 million US dollars) for the same 3 months Period.
After expanding cryptocurrency mining business from bit mining China, the company does not believe in deconsolidating the VIE businesses that 6.3% or 82.8 million RMB (12.6 million US dollars) of total assets and debts of RMB 161.6 million ($ 24.6 million), have a significant impact on operating results.
Change of strategy
The decision to remove the lottery-related subsidiaries is part of the strategy to become a leader in cryptocurrency mining and was first made in. announced December 2020 from the formerly known 500.com Company.
Back then under the 500.com Naming company, announced that it has signed definitive agreements to buy cryptocurrency mining machines and run the mining pool under the BTC.com Brand, including the domain and cryptocurrency wallet of Bitdeer Technologies Holding Company, as well as for the acquisition of a 7-nanometer mining machine manufacturer Bee Computing (HK) Limited.
500.com also announced that it would increase its share of Listed in Hong Kong Subsidiary and owner of big data centers Loto Interactive Limited and continues its expansion into the cryptocurrency mining space.
In March 2021, the Board of Directors decided to change the company’s name to Bit Mining Limited, as well as the ticker symbol, subject to shareholder approval, to signal the shift in business focus to cryptocurrency mining, and in April shareholders approved the decision to rename the company with immediate effect at an extraordinary general meeting of shareholders.
Bit Mining said in the press release that the companies’ financial results from the VIE structure would no longer be reported as part of the company’s consolidated financial statements as the company decided to end the ongoing losses from the Chinese lottery and focus entirely on crypto mining – Overseas business.